An Introduction
Investor optimism has grown around Musk’s support for President-elect Trump and analysts expect Tesla to benefit from potential regulatory and contract advantages. As a result, Tesla (TSLA) shares jumped 29% this past week pushing its valuation past $1T and with that joining the select MunAiMarkets Mega-Cap Ai Stocks Portfolio.
Only 7 tech companies have market capitalizations in excess of $1Trillion and their stock performances are highlighted below, in descending order, MTD 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 Stocks Portfolio
- Tesla (TSLA): UP 31.0% MTD
- Market Capitalization: $1.03T
- Forward Price-to-Earnings (P/E) Ratio: 104.5
- Price/Earnings-to- Growth (PEG) Ratio: 7.1
- Amazon (AMZN): UP 11.7% MTD
- Market Capitalization: $2.19T
- Forward P/E Ratio: 35.8
- PEG Ratio: 1.7
- Nvidia (NVDA): UP 11.2% MTD
- Market Capitalization: $3.58T
- Forward P/E Ratio: 42.9
- PEG Ratio: 1.2
- Alphabet (GOOGL): UP 4.2% MTD
- Market Capitalization: $2.19T
- Forward P/E Ratio: 20.7
- PEG Ratio: 1.2
- Microsoft (MSFT): UP 4.0% MTD
- Market Capitalization: $3.14T
- Forward P/E Ratio: 31.9
- PEG Ratio: 2.4
- Meta Platforms (META): UP 3.8% MTD
- Market Capitalization: $1.49T
- Forward P/E Ratio: 24.1
- PEG Ratio: 1.1
- Apple (AAPL): UP 0.5% MTD
- Market Capitalization: $3.43T
- Forward P/E Ratio: 30.7
- PEG Ratio: 3.1
Summary
The MunAiMarkets Mega-Cap Stocks Portfolio was UP 8.0% MTD. The average market cap of the 7 constituents in the Portfolio was $2.44T.
Thank you for reading the above article. I will update it weekly. Now, as a reward, here is a link to Money, Money, Money—It’s a Rich Man’s World!
