Tech Earnings On Tap - Priced For Perfection?

Tech stocks continue to appreciate regardless of any ebb and flow in the COVID-19 backdrop or the prospect of rising interest rates. Albeit there was a minor sell-off in late February as a function of rising interest rates that has been quickly erased. Tech underpins the stay-at-home economy and the so-called back-to-normal economy. And now more than ever, technology serves as an integral part of every slice of the economy. These stocks have remained strong despite the massive rotation into value stocks throughout 2021. Considering many of these names have appreciated since their February lows and breaking through their 52-week highs, these large-cap tech companies are priced for perfection heading into earnings. Stocks such as Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and the broader index Powershares (QQQ) have appreciated double digits over a two-week period as we head into earnings.

The Value Rotation and Roaring Tech

The market has witnessed a massive sea change as the large-scale vaccination efforts in the US is coming to fruition. The Dow Jones, S&P 500, and Nasdaq have rallied to all-time highs while recovery and value names have recaptured more of their lost market capitalization due to COVID-19. Meanwhile, many technology stocks that powered the market higher in the initial stages of this post-COVID-19 rally have stalled out early in 2021 to now rip higher as well. Once the value rotation began, many high-quality technology names fell from their highs and have traded sideways since their highs back in September. Now tech participation has been a major driver to propel the markets even higher and to even more lofty levels. Continue reading "Tech Earnings On Tap - Priced For Perfection?"

Apple – The Cheapest Growth Stock in the Market

Apple (NASDAQ:AAPL) is no longer the high flying growth giant the markets once loved. In the ten-year period starting in 2003 the stock saw gains of as high as 5,000%. The run up was nothing short of Wall Street magic.

Those days are over…but a new opportunity has emerged.

You see there are two classes of stocks. The first is comprised of optimistic growth stocks – Google, Tesla, Amazon and the like. These stocks trade at incredibly high earnings multiples because investors are factoring in expected growth. Simply put, they are anticipating the company to grow its earnings at a much faster rate than the overall market and therefore are paying much more for the cash these companies are generating today. Continue reading "Apple – The Cheapest Growth Stock in the Market"