Tech Stocks Are Still Cheap
Many technology stocks are trading at or near their all-time highs in terms of a dollar amount, Denny Fish of Janus Henderson Investors added to the conversation. But looking at the stocks from a valuation perspective paints a different picture.
For instance, Facebook and Alphabet's stock are merely trading at a similar multiple to consumer staples stocks, and based on this comparison, technology stocks certainly have room to grow even higher.
"This earnings season is just a continuation of what we have seen for the last 18 months where the secular dynamics is really strong for most of the names," he continued. "I expect a reasonably healthy earnings season, reasonable guidance."
Anthony agrees and offered an example. Shares of Facebook are still trading at a discount to its 30 percent EBITDA growth rate over the next three years versus a 14x EV/EBITDA multiple today. But that alone won't prompt investors to rush to buy the stock unless the company shows a re-acceleration of advertising revenue growth along with healthy usage numbers. Related Links: Tech ETFs Are Still Tempting 5 Reasons To Be Increasing Your Large Cap Exposure Right Now© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.