tl;dr
A much better distribution of earnings growth by the end of the year is setting up the stock market for better returns after recent pullbacks, said Tony Dwyer, Canaccord Genuity chief market strategist. In a CNBC interview, Dwyer said that although the “Magnificent Seven” stocks -- Microsoft (MSFT),...
A much better distribution of earnings growth by the end of the year is setting up the stock market for better returns after recent pullbacks, said Tony Dwyer, Canaccord Genuity chief market strategist. In a CNBC interview, Dwyer said that although the “Magnificent Seven” stocks -- Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Alphabet (GOOGL), Amazon (AMZN), Meta (META), and Tesla (TSLA) -- have carried 100% of the earnings growth, leaving the rest of the stock market with technically negative earnings, “the end of this year is going to change.” The real “bull story” of the broadening of the markets should come after the lowering of rates, and after hopes for a broader distribution of earnings, he said. “Our game plan, coming into this year, was to have some corrective action based upon the historic run we’ve had, and we're in the process of that,” he said. “Once you work your way through that, it’s going to be set up for a real good ending to the year.” Dwyer also said that equities have been up “so far, so fast,” as optimism became extreme, and “everybody that wanted to buy had bought.” Canaccord Genuity’s weekly stochastic for the S&P 500 (SP500), which measures the closing price in comparison to the high and low range over the prior 14 weeks, was about 90 for about 19 straight weeks. “That doesn’t just happen,” he said. “It’s historically pretty unique.” Of course, that optimism is destined to end up in a pullback, he added. “And higher rates have given us that opportunity for a pullback. Honestly, it looks a lot like it did last August. You're in a bull market, you had a heck of a run, you got overly optimistic across the board, and you're getting a pullback based on rates.”
More about Microsoft Corporation
Microsoft Corporation is an American multinational technology company that produces computer software, consumer electronics, personal computers, and related services. Its best-known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Sector: TECHNOLOGY
Industry: SERVICES-PREPACKAGED SOFTWARE
Market Cap: 302.84 billion
Current Price: $36.88
Change: $2.86
Change (%): 11.05%
Volume: 30.61
PE Ratio: 0.363
Revenue (ttm): 227.58 billion
EPS: $433.88
Dividend Yield: 0.332
Beta: 0.176
More about Apple Inc
Apple Inc. Technical Analysis Summary
More about NVIDIA Corporation
NVIDIA Corporation Summary
NVIDIA Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
Industry: MANUFACTURING, SEMICONDUCTORS & RELATED DEVICES
Market Cap: 2060574917000
Current Price: 68.97
Price Change: 0.16
Dividend Yield (%): 11.95
Price/Earnings Ratio: 24.68
EPS (Earnings Per Share): 0.488
Revenue: 60921999000
Net Income: 941.4
Debt to Equity: 7.61
Current Ratio: 2.653
More about Alphabet Inc Class A
Alphabet Inc. (GOOGL) Summary:
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Sector: Technology
Industry: Services-Computer Programming, Data Processing, etc.
Market Cap: $1.977 trillion
EPS: $27.33
Dividend Yield: None
P/E Ratio: 5.79
52-Week High: $24.34
52-Week Low: $0.24
Volume: 307,393,987
Stock Price: $1,166.71
Change: $0.56 ( 0.135%)
More about Amazon.com Inc
Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as one of the most influential economic and cultural forces in the world, as well as the world's most valuable brand.
Industry: TRADE & SERVICES
Sector: RETAIL-CATALOG & MAIL-ORDER HOUSES
Market Cap: 1,867,700,765,000
P/E Ratio: 61.7
Dividend Yield: None
EPS: 2.91
52-Week High: 55.78
52-Week Low: 0.0529
Shares Outstanding: 574,784,995,000
Current Price: 198.49
Book Value: 50.69
Price to Book Ratio: 0.139
More about Meta Platforms Inc.
Meta Platforms Inc. Stock Analysis Summary
Meta Platforms, Inc. is a technology company headquartered in Menlo Park, California. It develops products for connecting and sharing through various devices globally.
Sector: Technology
Industry: Services-Computer Programming, Data Processing, etc.
Market Cap: 1.258 trillion
Current Price: $33.34
Dividend Yield: 0%
Price/Earnings Ratio: 14.88
52-week High: $52.41
52-week Low: $29.29
Beta: 0.29
Volume: 134.90 million
Average Volume: 500.12 million
EPS: $2.002
PE Ratio: 0.247
More about Tesla Inc
Company: Tesla Inc
Industry: Manufacturing, Motor Vehicles & Passenger Car Bodies
Market Cap: $460.78 billion
Current Price: $733.29
Dividend Yield: 0.155%
P/E Ratio: 171.36
EPS: $1.115
Beta: 0.035
Sales: $96.77 billion
Previous Close: $733.29
52-Week High: $900.40
52-Week Low: $539.49
Analyst Recommendation: 4.3 (Buy)
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