IS IT TIME TO BUY NVIDIA, TESLA, META, APPLE, AMAZON, MICROSOFT OR ALPHABET ? - Aurora

IS IT TIME TO BUY NVIDIA, TESLA, META, APPLE, AMAZON, MICROSOFT OR ALPHABET ?

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The ‘Magnificent seven of tech stocks have driven the market rebound from the 2022 lows. The Magnificent Seven stocks account for around half of the weighting of the Nasdaq.These stocks have soared between 50% and 250% in 2023, Here’s a look at the Magnificent Seven stocks for 2024.

NVIDIA Corporation provides graphics, computing and networking solutions in the United States, Taiwan, China, and internationally. The company’s Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building 3D designs and virtual worlds. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.

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The stock currently meets three of our four stars. Positive market signals in absolute and relative terms are balanced by negative analyst signals. Fundamental analysis shows price potential intact. The situation in the sectoral environment is even slightly more favorable, with four-star criteria met. In the past, the share price has reacted to stressful situations with typical market price losses. Loss sensitivity is an important valuation criterion for us, just like the star rating. Taking into account this average loss sensitivity, we obtain an overall positive impression.

NVIDIA appears fundamentally undervalued compared to its theoretical fair price. Its valuation is comparable to the American Technology aggregate. The forecasted PE of 28.2 is relatively high; 25.7% higher than the industry average of 22.4. The fundamental price potential for NVIDIA looks good and in line with the average of its industry group.

NVIDIA is strongly followed by financial analysts, as over the last three months an average of 39 analysts provided earnings estimate forecasts up until the year 2026. Exceptionally high earnings growth (35.1%) is expected over the next few years. Currently, these analysts are negatively revising their earnings growth estimates by -14.2% compared with seven weeks ago. This negative pressure on the growth expectations has been apparent since January 23, 2024.

The 12-month indicated dividend yield is 0.0%. This estimated dividend represents 0.7% of the estimated earnings. Consequently, the dividend is easily covered, and very likely to prove sustainable.

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.

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The stock currently meets two of our four stars. Analysts have been bullish in revising earnings forecasts upwards and the share price was at fair fundamental value on February 6, 2024. From a technical perspective, however, the stock is under pressure. Recently, the price has failed to break away from the SP500 index, the market has found the stock unattractive. The situation in the sector environment is similar, with also two-star criteria met. In the past, the share price has reacted to stress signals with above-average price losses. This loss sensitivity is an important valuation criterion for us, just like the star rating. Taking into account the high loss sensitivity of the stock, we get a rather negative overall impression.

TESLA appears fundamentally fairly valued compared to its theoretical fair price. Its valuation is comparable to the American Automobiles & Parts aggregate. The forecasted PE is very high. With 40.9 it is 2.0 times the industry average of 20.1. The fundamental price potential for TESLA looks reasonable, and in line with the valuation of other stocks in the same industry group.

TESLA is strongly followed by financial analysts, as over the last three months an average of 35 analysts provided earnings estimate forecasts up until the year 2026. Exceptionally high earnings growth (30.5%) is expected over the next few years. Currently, these analysts are positively revising their earnings growth estimates by 5.7% compared with seven weeks ago. This positive pressure on the growth expectations has been apparent since January 16, 2024.

According to estimates, no dividend is foreseen in the next 12 months.

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. Meta Platforms, Inc. was incorporated in 2004 and is headquartered in Menlo Park, California.

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The stock meets all our stars. The market, analysts, and fundamental analysis have shown positive signals. META PLATFORMS INC was considered attractive by the market and also moved positively against the SP500 index. The stock remains fundamentally cheap and analysts were optimistic in revising earnings forecasts upwards. This pleasing situation is not specific to the company, but is also reflected in the sectoral environment in general. In the past, the share price has reacted to stressful situations with typical market price losses. Loss sensitivity is an important valuation criterion for us, just like the star rating. Taking into account this average loss sensitivity, we obtain an overall positive impression.

META PLATFORMS INC appears fundamentally fairly valued compared to its theoretical fair price. – its valuation is less attractive than the American Media aggregate. The fundamental price potential for META PLATFORMS INC looks reasonable.

META PLATFORMS INC is strongly followed by financial analysts, as over the last three months an average of 53 analysts provided earnings estimate forecasts up until the year 2025. The annualized growth estimate is 20.5% for the current year to 2025. Currently, these analysts are positively revising their earnings growth estimates by 30.3% compared with seven weeks ago. This positive pressure on the growth expectations has been apparent since February 2, 2024.

The 12-month indicated dividend yield is 0.4%. This estimated dividend represents 7.5% of the estimated earnings. Consequently, the dividend is easily covered, and very likely to prove sustainable.

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.

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The stock currently meets two of our four stars. Analysts have mostly confirmed their earnings forecasts to date and the market has been neutral on APPLE. However, the stock has failed to outperform the SP500 index recently and the stock is not cheap from a fundamental perspective. The sector environment currently meets all-star criteria, which tends to positively influence the stock. In the past, the share price has reacted to stressful situations with typical market price losses. Loss sensitivity is an important valuation criterion for us, just like the star rating. Taking into account this average loss sensitivity, we obtain an overall neutral impression.

APPLE appears fundamentally overvalued compared to its theoretical fair price. Its valuation is less attractive than the American Technology aggregate. The fundamental price potential for APPLE looks rather low, with other stocks in the same industry showing significantly better theoretical valuations.

APPLE is strongly followed by financial analysts, as over the last three months an average of 41 analysts provided earnings estimate forecasts up until the year 2025. The expected earnings growth of 17.5% is below the industry average of 20.6%. Currently, these analysts are slightly raising their earnings growth estimates by 0.0% compared with seven weeks ago. This positive pressure on the growth expectations has been continuous over the past 12 months.

TThe 12-month indicated dividend yield is 0.5%. This estimated dividend represents 14.0% of the estimated earnings. Consequently, the dividend is easily covered, and very likely to prove sustainable.

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. It operates through three segments: North America, International, and Amazon Web Services (AWS). The company’s products offered through its stores include merchandise and content purchased for resale; and products offered by third-party sellers. The company was incorporated in 1994 and is headquartered in Seattle, Washington.

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The stock currently meets three of our four stars. In addition to the positive absolute and relative market signals, analysts also endorse the stock. From a fundamental perspective, however, the stock has a rather high valuation. The situation in the sectoral environment is even slightly more favorable, with four star criteria met. In the past, the share price has reacted to stressful situations with typical market price losses. Loss sensitivity is an important valuation criterion for us, just like the star rating. Taking into account this average loss sensitivity, we obtain an overall neutral impression.

AMAZON.COM appears fundamentally overvalued compared to its theoretical fair price. Its valuation is less attractive than the American Retail aggregate. The forecasted PE of 27.7 is relatively high; 33.9% higher than the industry average of 20.7. The fundamental price potential for AMAZON.COM looks rather low, with other stocks in the same industry showing more theoretical potential.

AMAZON.COM is strongly followed by financial analysts, as over the last three months an average of 52 analysts provided earnings estimate forecasts up until the year 2025. Exceptionally high earnings growth (31.2%) is expected over the next few years. Currently, these analysts are positively revising their earnings growth estimates by 13.7% compared with seven weeks ago. This positive pressure on the growth expectations has been apparent since February 2, 2024.

According to estimates, no dividend is foreseen in the next 12 months.

Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft Viva, and Microsoft 365 Copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises and other office services. The company was founded in 1975 and is headquartered in Redmond, Washington.

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The stock currently meets three of our four stars. In addition to the positive absolute and relative market signals, analysts also endorse the stock. From a fundamental perspective, however, the stock has a rather high valuation. The situation in the sectoral environment is even slightly more favorable, with four-star criteria met. In the past, the share price has reacted to stressful situations with typical market price losses. Loss sensitivity is an important valuation criterion for us, just like the star rating. Taking into account this average loss sensitivity, we obtain an overall neutral impression.

MICROSOFT appears fundamentally overvalued compared to its theoretical fair price. – its valuation is less attractive than the American Technology aggregate. The fundamental price potential for MICROSOFT looks rather low, with other stocks in the same industry showing significantly better theoretical valuations.

MICROSOFT is strongly followed by financial analysts, as over the last three months an average of 38 analysts provided earnings estimate forecasts up until the year 2026. The annualized growth estimate is 20.9% for the current year to 2026. Currently, these analysts are positively revising their earnings growth estimates by 3.7% compared with seven weeks ago. This positive pressure on the growth expectations has been apparent since February 2, 2024.

The 12-month indicated dividend yield is 0.8%. This estimated dividend represents 19.6% of the estimated earnings. Consequently, the dividend is easily covered, and very likely to prove sustainable.

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

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The stock currently meets three of our four stars. From a fundamental point of view, the share price is attractive and the prospects are intact according to analysts. Market signals in this case are mixed: the share price has recently been trending upwards but has not always been able to follow the SP500 index over the past four weeks. The situation in the sectoral environment is even slightly more favorable, with four-star criteria met. In the past, the share price has reacted to stressful situations with typical market price losses. Loss sensitivity is an important valuation criterion for us, just like the star rating. Taking into account this average loss sensitivity, we obtain an overall neutral impression.

ALPHABET INC appears fundamentally fairly valued compared to its theoretical fair price.  Its valuation is less attractive than the American Technology aggregate. The fundamental price potential for ALPHABET INC looks reasonable.

ALPHABET INC is strongly followed by financial analysts, as over the last three months an average of 55 analysts provided earnings estimate forecasts up until the year 2025. The expected earnings growth of 17.1% is below the industry average of 20.6%. Currently, these analysts are positively revising their earnings growth estimates by 1.9% compared with seven weeks ago. This positive pressure on the growth expectations has been apparent since February 2, 2024

According to estimates, no dividend is foreseen in the next 12 months.

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