Will 7 magnificent stocks will be heated this summer?
The strategist of Goldman Sachs says that.
The so -called magnificent seven stocks are different from this year, most of which fall or in a single position profit area every year.
After two years of hot return, I could see correction. Their evaluation soared to an impossible level and eventually had to return to Earth.
In other words, as the trade war has been suspended for the past month, this magnificent seven shares and technical sectors generally have a storm. But is it a short -term Blip or is the assembly maintaining power?
Recently, John Flood, head of the American Sachs Global Banking & Markets’ American Sales Trading, has provided a team on what you can keep this summer for the grand seven stocks this summer. Meta (Meta), Tesla (TSLA), Amazon (AMZN), apologize (AAPL), Microsoft (MSFT), alphabet (Goog) and nvidia (NVDA).
Call it a comeback
The floods are ready for these stocks to rally this summer, and the progress of the last few weeks continues. Main reason? It is a combination of imports and falls.
“Investors continue to ask if these stocks have been overestimated. You have thrown the word” bubble “around. We can see it differently.” These companies just reported an unprecedented income and overpowered 13%of the estimates. The evaluation is changing much more reasonably due to the rise in income and the stock price drop. We saw the MAG 7 evaluation premium dropped sharply. ”
According to Goldman Sachs, 13%of imported bits are the largest since the third quarter of 2023.
In the flood, almost all MAG stocks have seen their evaluation, and some are lower than the S & P 500 Central P/E 28.
Alphabet stocks are cheaper with 28 to 18 P/E a year ago. Meta is also quite cheap with 29 to 26 P/E a year ago.
Microsoft and Apple are nearly close to a fairly reasonable range last year. Microsoft has decreased 36 times to 36 times from 38x to 36 times, and Apple is trading 32 times to 31 times.
The biggest decrease in the evaluation was Amazon, which fell from 54 people to NVIDIA from 33 a year ago. NVIDIA’s P/E ratio is still 45, but it’s still slightly higher, but it’s much lower than a year ago when trading with 72 times of income.
Then there is Tesla. One of the seven was mainly surge in evaluation due to acute rising after the election. Tesla’s P/E ratio has increased from 162 and 50 compared to the previous year.
MAG 7S has excellent performance this summer
The floods said that in addition to most low value and high income, the company should be able to explore economic uncertainty.
The flood means that they can defend less relying on economic growth, which can be defended in an uncertain time.In the short term, positioning is the main tail wind. Mutual and hedge funds are low in this name, which means that the remaining dry powder remains.
In addition, according to the flood, July is generally a good month for corporate repurchase, so it can be an additional alpha circle of this stock.
“All of this is looking for a magnificent 7 than a wider market this summer,” he said.
Currently, META has achieved the best of MAG 7 this year and recorded 19% YTD returns. NVIDIA increased 6%after Microsoft next increased 12%.
The rest are in negative territory, Amazon fell 3%, alphabet fell 9%, Apple decreased 18%, and Tesla fell 26%. Check in September and see where they are.
