NDR: Heading towards another tech bubble?
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NDR: Heading towards another tech bubble?

The powerhouse mega-cap companies, known as the Magnificent Seven ("Mag 7"), have shown remarkable outperformance in the market, sparking discussions about a potential bubble. Delving into historical performance, we focus on the "Largest 7" instead of solely the "Mag 7" for a detailed analysis.

NDR’s Custom Research Solutions (CRS) group answered the question, “How different are the Largest 7 stocks from the 2000 bubble compared to today?”

The characteristics of the largest stocks can change appreciably over time. In this case, the Largest stocks today have cheaper valuations compared to the Largest 7 in 2000. Additionally, in both absolute terms and relative to the rest of the index, today's Largest 7 stocks generate more operating cash flows per dollar of assets and have been growing sales much faster than the Largest 7 stocks back in 2000. This is shown by the grey bars in each of the three sections of the chart above.

Thank you for your interest in this excerpt from NDR’s Integrated Analyst - July 2024 edition, a quarterly publication showcasing the wide-ranging capabilities of NDR’s Custom Research Solutions group. Looking to settle a debate from your internal team meetings, increase the productivity of your organization, launch a new product suite, or quickly respond to an in-depth customer question? CRS can serve as an extension of your research team to assist with projects large or small. We build tailored solutions through direct engagement. Request a complimentary copy of this quarterly research report by completing the form to the right.

By submitting the form to the right, you will receive complimentary trial access to NDR’s full suite of investment research offerings and a digital copy of the Integrated Analyst. To learn more about NDR’s Custom Research Solutions visit us online, click here

Stay tuned for more insights from Ned Davis Research as we delve deeper into the dynamics shaping the economic landscape and offer actionable strategies for investors. Let us help you See the Signals.™

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