The so-called ‘Magnificent Seven’ – the 7 largest tech stocks listed in the US – are trading at substantially discounted valuations, Goldman Sachs’ analysts highlighted, citing the companies’ current price-to-earnings (PEG) ratios. These stocks witnessed a steep sell-off in September but may be set for a turnaround ahead of the new earnings season.
Notably, shares of the seven titans, including Apple, Microsoft, Amazon, Alphabet, Nvidia, Tesla, and Meta are currently trading at discounted valuations as their PEG ratio sits at 1.3, compared to 1.9 for the median S&P 500 stock. According to the analysis, this is the most significant discount since January 2017 and a level that has been attained only five times in the past 10 years.
Big Tech Trading at Largest Discount in Nearly 7 Years
This post originally appeared on 24/7 Wall St.