MunAiMarkets Mega-Cap Ai Stocks Portfolio Was Flat In October - ARCHIVED

An Introduction

Only 6 tech companies have market capitalizations in excess of $1Trillion and they fared marginally better than either the NASDAQ or S&P 500.  The performances of the stocks of those 6 companies are highlighted below, in descending order, for the month of October along with their current market capitalizations and price-to-earnings (P/E) ratios and price/earnings-to-growth (PEG) ratios and any pertinent news, analyses and/or commentary, where available.

What is the PEG ratio?

Given that growth is a key component of a stock’s expected return, the PEG ratio provides a simple way for investors to see how cheap a stock is relative to its growth rate and to compare a stock to its competitors.

The PEG ratio (price/earnings-to-growth ratio) builds upon the price-to-earnings (P/E) ratio by factoring in expected earnings growth. It takes into account not just the current earnings but also the company’s growth prospects. It is a quick calculation used to determine if a stock is trading at, above, or below fair value.

• A PEG ratio below 1.0 suggests that the stock price is undervalued relative to its expected future earnings growth. In other words, the market may not fully account for the company’s growth potential.
• Conversely, PEG ratios above 1.0 indicate that the stock price might be overvalued, as it isn’t necessarily supported by growth forecasts.
•  Look for stocks with a PEG ratio below the industry median.
• The PEG ratio should be used along with the balance sheet, debt burden, and cash flow, or other valuation metrics that use the income statement. It’s also important to understand things like a company’s competitive advantage, its addressable market, and its long-term growth prospects.

It’s a convenient rule of thumb but remember that the PEG ratio can vary based on earnings growth forecasts and the time frame being considered.

The MunAiMarkets Mega-Cap Ai Portfolio 

1. Nvidia (NVDA): UP 9.4% in October
   • Market Capitalization: $3.32T
   • Forward Price-to-Earnings (P/E) Ratio: 39.9
   • Price/Earnings-to- Growth (PEG) Ratio: 1.1
2. Alphabet (GOOGL): UP 4.4% in October
   • Market Capitalization: $2.10T
   • Forward P/E Ratio: 22.7
   • PEG Ratio: 1.2
3. Meta Platforms (META): No Change in October
   • Market Capitalization: $1.43T
   • Forward P/E Ratio: 23.3
   • PEG Ratio: 1.1
4. Apple (AAPL): DOWN 0.8% in October
   • Market Capitalization: $3.37T
   • Forward P/E Ratio: 30.2
   • PEG Ratio: 3.0
5. Amazon (AMZN): DOWN 0.8% in October
   • Market Capitalization: $2.08T
   • Forward P/E Ratio: 34.0
   • PEG Ratio: 1.6
6. Microsoft (MSFT): DOWN 5.1% in October
   • Market Capitalization: $3.05T
   • Forward P/E Ratio: 31.2
   • PEG Ratio: 2.4

Summary

The MunAiMarkets Mega-Cap Ai Portfolio was DOWN 0.4 in October. The average market cap of the 6 constituents in the Portfolio was $2.56T.

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