tl;dr
U.S. growth remains uncertain, but Goldman Sachs economists forecast above-consensus GDP growth by the end of 2024 at 2% fourth quarter over fourth quarter. The 10-year Treasury yields (US10Y) reached 5% earlier in 2023, but it is now under 4% as the Federal Reserve pivots towards a more dovish stan...
U.S. growth remains uncertain, but Goldman Sachs economists forecast above-consensus GDP growth by the end of 2024 at 2% fourth quarter over fourth quarter. The 10-year Treasury yields (US10Y) reached 5% earlier in 2023, but it is now under 4% as the Federal Reserve pivots towards a more dovish stance. Strategist Peter Oppenheimer noted a very low equity risk premium entering 2024, which may curb upside. However, strategist David Kostin anticipates that deflation and interest rate cuts will keep real yields low and cause a P/E multiple greater than 19x, with the S&P 500 (SP500) already trading at 20x Goldman’s EPS forecast of $237, implying a 5% growth. The market is in the “Optimism” stage of its four-stage cycle, according to strategist Oppenheimer, with the Magnificent Seven stocks (TSLA), (NVDA), (AAPL), (AMZN), (META), (MSFT), (GOOGL) capturing 28% of the S&P 500 (SP500) market cap. Generative AI captured corporate capex budgets in 2023, and obesity drugs also impacted some sectors of the market, including giants such as Walmart (WMT), Coca-Cola (KO), and Costco (COST). Lastly, as we head into 2024, the report expects the innovation platform of the world to deliver a new theme that will capture investor attention, with early economic data suggesting that tech (XLK) may be the worst performing sector in a presidential election year.
More about Tesla Inc
Tesla, Inc. is a leading American electric vehicle and clean energy company, with a diverse product portfolio including electric cars, battery energy storage, solar panels, and solar roof tiles. In 2020, Tesla captured 16% of the plug-in market and 23% of the battery-electric market, indicating strong sales and market presence. Additionally, through its subsidiary Tesla Energy, the company is a major installer of solar photovoltaic energy generation systems and one of the largest global suppliers of battery energy storage systems. The company's financial data reflects a positive market sentiment, with strong revenue of 789.89 billion, a stock price of 79.9, and a positive RSI of 30.28. However, there are potential risks associated with the stock's negative Bollinger Band indicator and negative price change of -0.442, which could indicate a bearish trend. It's important to note that past performance is not always indicative of future results, and investors should carefully consider these factors before making any investment decisions.
More about NVIDIA Corporation
NVIDIA Corporation is a leading American multinational technology company focused on the manufacturing of semiconductors and related devices. With a market capitalization of $122.32 billion and a current stock price of $641.23, the company has shown steady growth and a strong market sentiment. The stock has a low volatility, with a beta of 0.16, and a healthy return on equity of 18.18%. The company's strong financial performance is further evidenced by a high gross profit margin of 65.33% and a solid earnings per share of 12.74. However, it's important to note that the stock is currently trading at a relatively high P/E ratio of 2.055, indicating potential overvaluation. As always, investors should consider the potential risks and uncertainties associated with the market, and remember that past performance is not always indicative of future results.
More about Apple Inc
Apple Inc. is the world's largest technology company by revenue, totaling $274.5 billion in 2020, and the most valuable company since January 2021. As of 2021, Apple is the fourth-largest PC vendor by unit sales and the fourth-largest smartphone manufacturer. The stock performance shows a market capitalization of $2994.38 billion, with a price-to-earnings ratio of 31.46 and a dividend yield of 0.94%. The company has a 6.12% return on equity and a beta of 0.253. Market sentiment is currently at $383.28 billion, with a book value per share of $199.16. While the company has shown strength in revenue and market value, potential risks and uncertainties should be considered, as past market behavior is not always a reliable indicator of future performance.
More about Amazon.com Inc
Amazon.com Inc is a significant player in the U.S. information technology industry, with a market capitalization of 1.57 trillion. The stock price has shown steady growth, with a current price of $177.14 and a 1-year change of 79.55%. The company operates in the retail-catalog & mail-order houses sector, and its market sentiment appears to be bullish. However, with a relative strength index (RSI) of 53.95, the stock is not overbought or oversold. While Amazon.com Inc is a valuable brand and a major force in the global economy, past performance may not guarantee future results, and there are potential risks associated with investing in this stock.
More about Meta Platforms Inc.
Meta Platforms Inc. (formerly Facebook) is a technology company that develops products for connectivity and sharing through various devices. The company's market capitalization stands at $909.63 billion with a current stock price of $376. The stock has shown a 52-week range of $231.23 to $384.33, indicating a steady upward trend. The Relative Strength Index (RSI) of 48.97 suggests a neutral sentiment in the market. The company's net income is $31.24 billion with a Price/Earnings ratio of 11.33, indicating a favorable valuation. However, the Bollinger Bands and moving averages indicate potential volatility in the stock. The overall market sentiment is cautiously optimistic, with potential risks associated with market uncertainties and regulatory challenges in the technology sector.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company in the services-prepackaged software industry, with a market capitalization of $2.79 trillion. The stock is currently trading at $408.96, with a 52-week high of $29.35 and a 52-week low of $36.51. The company has a strong relative strength index (RSI) of 0.353, indicating bullish sentiment in the market. However, the stock is currently trading above its 200-day moving average, suggesting potential overbought conditions. The company's revenue growth has been impressive at 10.3% and it is considered one of the Big Five companies in the U.S. information technology industry. It is important to note that past performance is not always indicative of future results, and investors should carefully consider potential risks and uncertainties before making any investment decisions.
More about Alphabet Inc Class A
Alphabet Inc. Class A is a technology and computer programming conglomerate with a market capitalization of $1,755,456,340,000. The stock is currently trading at $152.40 with a 0.46% change in price and a 0.11% change in volume. The company's stock performance has been relatively stable, indicating a bullish trend. However, market sentiment may be impacted by potential risks associated with the industry and the company's performance. It is important to consider the support and resistance levels, as well as any potential breakouts or head and shoulders patterns in the stock's chart. Past market behavior is not always a reliable indicator of future performance, so it is crucial to carefully analyze the implications of the data and trends.
More about Walmart Inc
Walmart Inc. is a multinational retail corporation in the trade and services sector, specifically in the retail-variety stores industry. With a market cap of $424.43 billion and a current stock price of $237.11, the company has shown a 6.01% increase in revenue and a 2.27% increase in stock performance. The stock has a relative strength index of 0.0255, indicating a slightly overbought condition. The market sentiment towards Walmart Inc. is bullish, with a high trading volume of 638,785,028 shares. However, it's important to note that past performance is not always indicative of future results, and there are potential risks associated with investing in the stock, especially considering the current market conditions.
More about The Coca-Cola Company
The Coca-Cola Company is a multinational beverage corporation with interests in manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups. With a market capitalization of $254.78 billion, the stock is currently trading at $23.86 with a 1.82% increase. The company's P/E ratio stands at 2.47, and its dividend yield is 2.47%. The Relative Strength Index (RSI) is at 64.83, indicating a bullish sentiment, while the Bollinger Bands suggest a minor increase in volatility. The stock is currently trading above its 50-day moving average, signaling a potential bullish trend. However, it's important to note that past performance is not indicative of future results, and there are potential risks and uncertainties associated with market sentiment and technical indicators.
More about Costco Wholesale Corp
Costco Wholesale Corporation is a multinational retailer operating membership-only big-box stores. As of 2020, it was the fifth largest retailer in the world and the largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016. The company's stock performance has been strong, with a market cap of $292.9 billion, a current stock price of $553.46, and a 1-year return of 45.06%. The market sentiment towards Costco is positive, with a relatively low beta of 0.0265, indicating lower volatility compared to the market. However, potential risks and uncertainties should be considered, as past performance is not always indicative of future results in the stock market.
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