<\/p>\n
Banking giant Goldman Sachs is now bullish on a sector that has recently underperformed the broader market.<\/p>\n
A team of analysts led by Peter Oppenheimer, chief global equity strategist at Goldman Sachs Research, are predicting a massive rally for tech stocks, reports<\/a> MarketWatch.<\/p>\n Say Goldman\u2019s analysts,<\/p>\n \u201cGlobally, the IT sector now has a P\/E (Price-to-Earnings) below consumer discretionary, consumer staples and industrials. Unlike most sectors, its valuation premium relative to history has also fallen sharply.\u201d<\/em><\/p>\n Goldman\u2019s analysts also say that tech\u2019s price-to-earnings-to-growth ratio (PEG) \u2013 a comparison of a stock\u2019s price against how quickly analysts expect the company\u2019s earnings to grow over the coming years \u2013 is below that of the global aggregate market, creating \u201cvaluation opportunities,\u201d meaning tech stocks are undervalued at current market prices.<\/p>\n The bank\u2019s analysts highlight that tech earnings revisions are more positive than other sectors and there is a large gap between stock performance and underlying earnings growth. They also argue that tech companies\u2019 increasing capital expenditures should payoff down the line.<\/p>\n \u201cWhile a severe shock to credit availability or hyperscaler revenues could jeopardize this spending, analyst estimates for the magnitude of the earnings tailwind created by those investments have only increased during the past few weeks.\u201d <\/em><\/p>\n Finally, the bank\u2019s analysts say that they are not concerned about a market bubble, noting tech valuations remain lower than they were before the 2000 tech bubble.<\/p>\n Follow us on X<\/a>, Facebook<\/a> and Telegram<\/a><\/span><\/em>  <\/p>\n Generated Image: Midjourney<\/em><\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Banking giant Goldman Sachs is now bullish on a sector that has recently underperformed the broader market. A team of analysts led by Peter Oppenheimer, chief global equity strategist at Goldman Sachs Research, are predicting a massive rally for tech stocks, reports MarketWatch. Say Goldman\u2019s analysts, \u201cGlobally, the IT sector now has a P\/E (Price-to-Earnings) […]<\/p>\n","protected":false},"author":2,"featured_media":423964,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-423957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/423957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=423957"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/423957\/revisions"}],"predecessor-version":[{"id":423965,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/423957\/revisions\/423965"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/423964"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=423957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=423957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=423957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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