Goldman Sees Earnings-Led Rally in Big Tech Stocks After Rout
- Strategists say valuation gap versus rest of S&P 500 is wide
- History bodes well for tech stocks to outperform, they add
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US technology stocks may be about to turn a corner after the Nasdaq 100’s biggest monthly decline this year, according to strategists at Goldman Sachs Group Inc.
They say the selloff has led to historically cheap valuations for the tech stocks at a time when earnings estimates are still rising. In particular, they point to a valuation metric known the PEG ratio, which calculates price relative to earnings and long-term growth.