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Prediction #8 – The FANG’s Will Lead Stocks Higher In 2018
Facebook ($FB), Amazon ($AMZN), Netflix ($NFLX), and Alphabet ($GOOGL) have had standout 2017, and have been the leaders in the 2017 stock market advance. That strength can continue into 2018 as earnings and valuation continue to support the rise of those companies stock prices. That leads us to prediction number 8 for 2018, The FANG’s Will Lead Stocks Higher In 2018
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Valuations are the primary reason why the “#FANG’s” can continue to perform well in 2018. Valuations for stock as Alpahebet and Facebook are trading at multiple in the low 20’s based on 2019 estimates. Netflix is expected to grow at nearly 42 percent and based on earnings estimates for 2019 of $3.90 the stock trades at about 47 times estimates.
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Fundamental Chart data by YCharts
Even Amazon, focusing on revenue, will be trading at roughly two times 2019 revenue estimates, for a company that is expected to grow revenue by nearly 17 percent to $275 billion.
Even though many of these companies have had strong 2017, they can continue to perform well in 2018. Mostly because they have the earnings and revenue growth to help the support the rising valuations.
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The purpose of the 10 predictions is for fun and to think about the year to come. It helps to organize thoughts and think about potential themes and trends that could develop. See our 10 predictions for 2017 and judge for yourself how we did.Â
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Tags: #Fang #predictions2018 #facebook #amazon #netflix #alphabet #google
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Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.