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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
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.
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.
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.
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Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
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Tags: #Fang #predictions2018 #facebook #amazon #netflix #alphabet #google