Research Detail
| Global Equity Ratings |
Magnificent 7 with strong momentum Rating changes: Imperial Oil, Uber Technologies, Deutsche Bank, Booking Holdings, UnitedHealth Group The S&P 500 Index recently soared to a new all-time high and has now risen by +9% since the beginning of the year. A large part of the upward trend is attributable to the strong performance of the so-called Magnificent 7 stocks. These are the shares of Microsoft, Apple, NVIDIA, Amazon, Alphabet, Meta and Broadcom. With a combined market capitalization of USD 13,200 billion, they have a weighting of 28% in the S&P 500 Index. These seven technology stocks alone have risen by +14% since the beginning of the year and are therefore largely responsible for the rise in the overall index due to their high weighting. The valuation of the Magnificent 7 has also fallen since the beginning of the year. While the weighted P/E ratio for the calendar year 2024e was still 31x at the beginning of the year, it has now fallen to 29x. This is because the consensus earnings forecasts have risen even more sharply than the share prices. In our view, the high growth figures in the 4Q23 results and the companies' strong guidance for this year were the justifiable reasons for the higher forecasts. The high demand for hardware and software with a focus on AI solutions will continue in the coming years and the Magnificent 7 have business models to monetize the demand. Holcim: Dividend increased by 12% after record result and CHF 1 billion buyback announced. Solid guidance 2024 Broadcom: High margin and profit increase in Q2 as well |
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| 2024/03/13 / Erste Group Research |
Magnificent 7 with strong momentum Rating changes: Imperial Oil, Uber Technologies, Deutsche Bank, Booking Holdings, UnitedHealth Group The S&P 500 Index recently soared to a new all-time high and has now risen by +9% since the beginning of the year. A large part of the upward trend is attributable to the strong performance of the so-called Magnificent 7 stocks. These are the shares of Microsoft, Apple, NVIDIA, Amazon, Alphabet, Meta and Broadcom. With a combined market capitalization of USD 13,200 billion, they have a weighting of 28% in the S&P 500 Index. These seven technology stocks alone have risen by +14% since the beginning of the year and are therefore largely responsible for the rise in the overall index due to their high weighting. The valuation of the Magnificent 7 has also fallen since the beginning of the year. While the weighted P/E ratio for the calendar year 2024e was still 31x at the beginning of the year, it has now fallen to 29x. This is because the consensus earnings forecasts have risen even more sharply than the share prices. In our view, the high growth figures in the 4Q23 results and the companies' strong guidance for this year were the justifiable reasons for the higher forecasts. The high demand for hardware and software with a focus on AI solutions will continue in the coming years and the Magnificent 7 have business models to monetize the demand. Holcim: Dividend increased by 12% after record result and CHF 1 billion buyback announced. Solid guidance 2024 Broadcom: High margin and profit increase in Q2 as well |
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Erste Group related products
Page 1 of 5
| Name | ISIN | # Erste Group products |
| - | US90353T1007 | 0 |
| - | CA4530384086 | 0 |
| ABB | CH0012221716 | 0 |
| Abbott Laboratories | US0028241000 | 0 |
| AbbVie | US00287Y1091 | 0 |
| Adidas | DE000A1EWWW0 | 32 |
| Adobe | US00724F1012 | 0 |
| Advanced Micro Devices | US0079031078 | 0 |
| Alibaba | US01609W1027 | 0 |
| Allianz | DE0008404005 | 33 |
| Alphabet | US02079K3059 | 0 |
| Amazon.Com | US0231351067 | 1 |
| Amgen | US0311621009 | 0 |
| Anheuser Busch Inbev | BE0974293251 | 0 |
| Apple | US0378331005 | 0 |
| ASML | NL0010273215 | 0 |
| AT&T | US00206R1023 | 0 |
| Banco Santander | ES0113900J37 | 0 |
| Bank of America | US0605051046 | 0 |
| BASF | DE000BASF111 | 31 |
| Beiersdorf | DE0005200000 | 26 |
| BHP Group | GB00BH0P3Z91 | 0 |
| BMW | DE0005190003 | 36 |
| BNP Paribas | FR0000131104 | 0 |
| Booking Holdings | US09857L1089 | 0 |
