Fortunately, two names have held up well over the past couple of months and looking to be showing strength relative to their peers. This isn’t surprising after a 113% rally for the index in barely 15 months. However, with more than 30 names still trading at more than 40x sales, and the price to sales ratio for the S&P-500 (SPY) in nose bleed territory at record levels, it’s much harder to find the value out there lately. Typically, this period of consolidation would have unearthed many values plays in the tech space, with valuations having time to play catch-up through this period of digestion. It’s been a volatile year thus far for the Nasdaq Composite (COMPQ), with the index up 9% year-to-date but enduring two sharp corrections along the way.
0 Comments
Leave a Reply. |