tl;dr
The S&P 500’s (SP500) largest six tech stocks -- Nvidia (NVDA), Meta (META), Microsoft (MSFT), Alphabet (GOOG), and Apple (AAPL) -- have continued to lead the market with a narrow leadership and justified by the strength in earnings revisions this period.According to a UBS U.S. Equity Strategy, 2024...
The S&P 500’s (SP500) largest six tech stocks -- Nvidia (NVDA), Meta (META), Microsoft (MSFT), Alphabet (GOOG), and Apple (AAPL) -- have continued to lead the market with a narrow leadership and justified by the strength in earnings revisions this period.
According to a UBS U.S. Equity Strategy, 2024 EPS growth expectations for the largest six tech stocks are for 26.3%, compared to 6.1% for the rest of the S&P 500 (SP500). In addition, this year’s earnings estimates for the S&P 500 (SP500) are down -0.7% since late October, but “this is much better than the historical average of -2.9% over the same period,” analysts said. Outside of technology (XLK), the rest of the S&P 500 (SP500) estimates declined -3%, it was held back by low revisions in energy (XLE), materials (XLB), and health care (XLV). Revisions for the largest six technology companies were up 8.9%. Just over half of this upside came from Nvidia (NVDA). But aside from the six largest stocks, technology actually declined -1.9%. EPS revisions and projected growth for the largest six stocks from Oct. 27 through today: Nvidia (NVDA) - Percent change in 2024 EPS: 41.9; Projected 2024 EPS growth: 93.6, Amazon (AMZN) - Percent change in 2024 EPS: 21; Projected 2024 EPS growth: 33.9, Meta (META) - Percent change in 2024 EPS: 14.9; Projected 2024 EPS growth: 42.6, Microsoft (MSFT) - Percent change in 2024 EPS: 3.5; Projected 2024 EPS growth: 16.5, Alphabet (GOOG) - Percent change in 2024 EPS: 1.3; Projected 2024 EPS growth: 17.4, and Apple (AAPL) - Percent change in 2024 EPS: -0.3; Projected 2024 EPS growth: 7.6
More about NVIDIA Corporation
NVIDIA Corporation is a leading technology company in the manufacturing and semiconductors industry, with a market capitalization of $219.86 billion. The stock is currently trading at $73.53, with a modest increase of 0.16%. The company has shown strong growth potential with a P/E ratio of 11.96 and a forward P/E ratio of 24.68. NVIDIA also has a healthy dividend yield of 0.488%, indicating financial stability and potential for income investors. The company's revenue stands at $60.92 billion, with a net income of $862.5 million, and an EPS of 7.61. These financial metrics demonstrate a solid performance and positive market sentiment towards NVIDIA's future prospects in the technology sector.
More about Meta Platforms Inc.
Meta Platforms Inc. (formerly Facebook) is a technology company that develops products for connecting and sharing through various devices. With a market cap of $1.26 trillion, the stock is currently trading at $504.54, with a 52-week range of $278.81 to $384.33. The stock has a P/E ratio of 33.33 and a dividend yield of 0.29%. The company's stock performance has been strong, with a 2.002% return on assets and a profit margin of 14.87%. Market sentiment appears bullish, but potential risks and uncertainties should be considered, as past performance is not indicative of future results.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company that produces computer software, consumer electronics, personal computers, and related services. It is known for its Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Microsoft also produces the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. In 2020, Microsoft ranked No. 21 in the Fortune 500 rankings of the largest US corporations by total revenue. As of 2016, it was the world's largest software maker by revenue. It is considered one of the Big Five companies in the US information technology industry, along with Google, Apple, Amazon, and Facebook.
Financial metrics for Microsoft Corporation include a market cap of $3.159 trillion, a current stock price of $38.45, a dividend yield of 2.86%, and a price-to-earnings ratio of 11.06. The company has a beta of 30.61 and a relative strength index (RSI) of 0.363. With a total revenue of $227.583 billion and a net income of $456.81 billion, Microsoft has a debt-to-equity ratio of 0.332 and an earnings per share of $0.176.
More about Alphabet Inc Class C
Alphabet Inc Class C is a multinational conglomerate in the technology and computer programming sector, with a market capitalization of $1.78 trillion and a price-to-earnings ratio of 24.89. The stock has shown a 5.8% increase in the past year, with a current price of $24.34. Market sentiment appears positive, with a Relative Strength Index (RSI) of 62.2 indicating a bullish trend. However, there is a potential risk associated with the stock's Bollinger Bands, which show a volatility of 0.56, suggesting uncertainty in future price movements. It's important to note that past performance is not always indicative of future results in the stock market.
More about Apple Inc
Apple Inc. is the world's largest technology company by revenue, totaling $274.5 billion in 2020. Since January 2021, it has been the world's most valuable company. As of 2021, Apple is the world's fourth-largest PC vendor by unit sales and the fourth-largest smartphone manufacturer. The stock performance has shown a 0.95% increase, with a bullish trend indicated by a Relative Strength Index (RSI) of 66.42. The stock is currently trading at $201.28, with a 0.16% increase in price. The market sentiment towards Apple Inc. remains positive, with a strong support level at $195.65 and resistance at $207.50. However, there are potential risks and uncertainties associated with future performance, as past market behavior is not always a reliable indicator of future trends.
More about Amazon.com Inc
Amazon.com Inc is a leading American multinational technology company specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence. The company is a major player in the U.S. information technology industry and is considered one of the most influential economic and cultural forces globally. Amazon's stock performance has been strong, with a market cap of $1.856 trillion and a current stock price of $3,000. The company's P/E ratio of 61.64 and EPS of 2.9 suggest a high valuation, while the RSI of 55.78 indicates a neutral sentiment. However, with a relative strength index (RSI) of 55.78, the stock is not currently overbought or oversold. The bullish trend in the stock price suggests positive market sentiment, but potential risks and uncertainties should be considered, as past performance is not always indicative of future results.
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