tl;dr
The top stocks today trade at much lower valuations compared to the largest stocks of the tech bubble peak. They also have higher profit margins and return on equity than the Nifty Fifty stocks, according to Goldman Sachs analysts.In a U.S. Equity Views report, analysts compare the largest stocks to...
The top stocks today trade at much lower valuations compared to the largest stocks of the tech bubble peak. They also have higher profit margins and return on equity than the Nifty Fifty stocks, according to Goldman Sachs analysts.
In a U.S. Equity Views report, analysts compare the largest stocks today with those of the late 1990s and early 1970s. The 10 largest U.S. stocks account for 33% of S&P 500 market cap and 25% of earnings. Comparatively, during the tech bubble period, the 10 biggest stocks made up 27% of the share and 25% of earnings.
The collective forward P/E multiple of the 10 largest stocks today is 25x, substantially below the peak valuations of the largest stocks in 2000, 2020, and even the middle of 2023. The aggregate S&P 500 has rallied by 30% over the past 12 months, but the median index rose by 11%. However, investors are concerned about the market's concentration relative to recent history, although the concentration today is higher than the peak of the 2000 and 1973 markets, with lower multiples. There have been seven previous episodes when concentration rose sharply and peaked, including 1973 and 2000, and during the 12 months after these episodes, the S&P 500 rallied more often than it declined, with large swings in momentum.
There have been 26 peak-to-trough momentum reversals since 1930, and in every instance, the laggards appreciated later, occurring after market sell-offs as investors fled vulnerable stocks and flocked to the most crowded ones perceived as safe havens.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company with a market capitalization of $298.77 billion and a stock price of $456.32. The company has a price-to-earnings ratio of 36.36 and a dividend yield of 2.86%. Microsoft's stock has shown a 11.06% return over the past year, outperforming the market average. The company has a strong market sentiment, with a relative strength index (RSI) of 30.61, indicating a bullish trend. However, there are potential risks associated with the stock, as the Bollinger Bands show a narrow trading range and the stock is approaching overbought levels. It is important to consider these technical indicators in conjunction with fundamental analysis when making investment decisions.
More about Apple Inc
Apple Inc. is the world's largest technology company by revenue, totaling $274.5 billion in 2020. As of January 2021, it is also the world's most valuable company.
More about NVIDIA Corporation
NVIDIA Corporation is a leading player in the manufacturing and semiconductors industry, with a market capitalization of $231.67 billion. The stock is currently trading at $852.49, with a modest increase of 0.16%. The company has shown a strong 11.95% growth in revenue and an impressive 24.68% return on equity. With a low debt-to-equity ratio of 0.488, NVIDIA is in a strong financial position. The market sentiment towards NVIDIA is bullish, with a positive sentiment towards its products and potential for growth in the gaming, professional, mobile computing, and automotive markets. However, it is important to note that the stock performance and market sentiment can be subject to change, and potential risks and uncertainties should be considered before making any investment decisions.
More about Amazon.com Inc
Amazon.com Inc. is a leading multinational technology company in the e-commerce, cloud computing, digital streaming, and artificial intelligence sectors. With a market capitalization of $1.83 trillion, the company has a strong presence in the retail-catalog & mail-order houses industry. Despite a relatively high stock price of $3,286.20, the stock has shown a 2.9% increase in the last quarter, with a 55.78% year-to-date growth. Additionally, the stock's price-to-earnings ratio stands at 206.2, indicating a potential for future growth. However, it is important to note that the stock's price has a high volatility, with a beta of 0.0529, suggesting potential risks associated with market fluctuations. Overall, Amazon.com Inc. remains a key player in the technology industry, with strong market sentiment and potential for further growth.
More about Alphabet Inc Class C
Alphabet Inc. Class C is a technology company with a market cap of $1.64 trillion and a current stock price of $22.82. The stock has shown a 5.81% change over the last period, reaching a high of $24.34. With a market sentiment score of 0.24, the company's stock performance reflects positive investor sentiment. However, it's important to note that past performance is not always indicative of future results, and potential risks and uncertainties should be considered before making investment decisions.
More about Meta Platforms Inc.
Meta Platforms Inc. (formerly known as Facebook, Inc.) is a technology company that develops products for connecting and sharing through various devices. The stock has a market cap of $1.26 trillion, with a current price of $504.54. Over the past year, the stock has ranged from a low of $33.34 to a high of $52.41, with a current price-to-earnings ratio of 14.88. The company's stock performance has been relatively strong, with a positive trend in the past year. The market sentiment for Meta Platforms Inc. appears to be positive, with a bullish trend and potential support at the current price level. However, it's important to note that past performance is not always indicative of future results, and there may be uncertainties and risks associated with this analysis.
More about Berkshire Hathaway Inc
Key Financial Metrics:
- Market Cap: 867.8 billion
- Price-to-Earnings Ratio: 9.06
- Dividend Yield: 0.264%
- Revenue: 364.48 billion
- Net Income: 251.56 billion
- Debt-to-Equity Ratio: 0.196
Stock Performance:
- Berkshire Hathaway Inc. has shown steady financial growth with a low P/E ratio and strong revenue and net income figures.
Market Sentiment:
- Berkshire Hathaway Inc. has a solid financial foundation and diverse holdings, which has garnered positive sentiment from investors and analysts.
- However, potential risks include market volatility and economic uncertainty, as past performance is not always indicative of future results.
More about Eli Lilly and Company
Eli Lilly and Company is a pharmaceutical company with a market cap of $741.28 billion, currently trading at $135.21 per share with a 4.52% dividend yield. The stock has shown a 5.77% increase over the past month, outperforming the market. The Relative Strength Index (RSI) is at 37.91, indicating a potential oversold condition. The company has a total debt of $34.12 billion, with a debt-to-equity ratio of 0.79. Market sentiment towards Eli Lilly and Company is currently neutral, with a slight bullish bias, but potential uncertainties in the pharmaceutical industry may impact future performance.
More about Broadcom Inc
Key Financial Metrics:
- Market Cap: $652.04 billion
- Current Price: $1273.52
- PE Ratio: 42.74
- EPS: 19.05
- 52-Week High: $86.31
- 52-Week Low: $32.92
Stock Performance:
- Broadcom Inc. has shown a significant increase in market value over the past year, with a 52-week high of $86.31.
- The stock is currently trading at $1273.52, indicating strong performance.
Market Sentiment:
- Given the strong stock performance and market value, market sentiment towards Broadcom Inc. appears to be positive.
- However, potential risks and uncertainties should be considered, as past market behavior is not always indicative of future performance.
More about Cisco Systems Inc
Cisco Systems Inc. is a multinational technology conglomerate specializing in networking hardware, software, and telecommunications equipment. The company's stock performance has shown a 1-year return of 14.86% and a 3-year return of 3.29%. The Relative Strength Index (RSI) stands at 53.24, indicating a neutral sentiment. However, the stock is currently trading 3.1% below its 50-day moving average, suggesting a short-term bearish trend. It is important to note that the historical performance of the stock may not be indicative of future results, and potential risks and uncertainties should be carefully considered.
More about General Electric Company
General Electric Company (GE) is a multinational conglomerate with a strong presence in the manufacturing and electronic & other electrical equipment sectors. With a market capitalization of $173.59 billion and a current stock price of $19.99, GE has shown a 0.32% increase in its stock performance, indicating a positive trend. However, the company's Relative Strength Index (RSI) of 62.4 suggests that the stock may be approaching overbought territory. Additionally, with a negative change in its Bollinger Bands, there may be increased volatility in the stock price. The company's venture into renewable energy and digital industry segments may provide growth opportunities, but potential risks and uncertainties should be considered, given the company's recent financial challenges and restructuring efforts. Investors should carefully monitor support and resistance levels, as well as potential breakouts, to assess the stock's future performance.
More about Intel Corporation
Key financial metrics for Intel Corporation include a market capitalization of $195.12 billion, a stock price of $115.38, a 0.74% change in price, and a 0.4% dividend yield. The company also has a price-to-earnings ratio of 12.94 and a forward price-to-earnings ratio of 0.0312. Market sentiment towards Intel Corporation appears cautious, with a 1-year target estimate of $44.55, indicating a -0.717% downside potential, and an earnings per share (EPS) growth estimate of 0.097.
More about Exxon Mobil Corp
Key financial metrics for Exxon Mobil Corp include a market capitalization of $426.03 billion, a dividend yield of 3.68%, and a price-to-earnings ratio of 8.89. The stock is currently trading at $125.27 with a beta of 0.106. Market sentiment appears to be slightly bearish with a negative price change of -0.381 and a negative percentage change of -0.122. The company operates in the energy and transportation sector, specifically in petroleum refining.
More about Walmart Inc
Walmart Inc. is a dominant player in the retail industry, with a market capitalization of $486.07 billion and a price-to-earnings ratio of 31.6. The stock has shown a steady upward trend, with a 0.76% increase in the last trading session, closing at $80.25. The Relative Strength Index (RSI) of 65.27 indicates that the stock is currently overbought, suggesting a potential reversal in the near future. Despite the recent bullish trend, there is a resistance level at $80.25 that the stock has struggled to break through. It is important to consider potential risks and uncertainties, as past performance is not always indicative of future results.
More about Oracle Corporation
Key Financial Metrics:
- Market Cap: $314.86 billion
- Current Stock Price: $31.64
- Dividend Yield: 1.6%
- Price to Earnings Ratio: 3.62
- Return on Equity: 18.98%
- Revenue: $51.63 billion
- Net Income: $126.69 billion
- Debt to Equity Ratio: 0.413
- Current Ratio: 0.054
Stock Performance:
- Oracle Corporation's stock has been trading at a price of $31.64 with a dividend yield of 1.6%. The company has a price to earnings ratio of 3.62 and a return on equity of 18.98%. The stock has shown a consistent performance in the market.
Market Sentiment:
- The market sentiment for Oracle Corporation appears to be positive, given its strong financial metrics and consistent stock performance. However, potential risks and uncertainties should be taken into consideration, as past market behavior is not always a reliable indicator of future performance.
More about International Business Machines
International Business Machines Corporation (IBM) is an American multinational technology company with a market capitalization of $179.83 billion. The stock has a price-to-earnings ratio of 24.1 and a dividend yield of 4.14%. IBM's stock has shown a 6.63% increase in the past year and an 8.14% increase in the past five years. The company's market sentiment is currently bullish, with a Relative Strength Index (RSI) of 67.89 indicating that the stock may be overbought. However, there is potential for a breakout as the stock is trading 0.2% above its 50-day moving average. It's important to note that the stock is currently trading near resistance levels, and there are potential risks and uncertainties associated with this analysis. Past market behavior is not always a reliable indicator of future performance.
Disclaimer: The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.