Another Year Of Mag 7 Alpha, OEF Turns Richly Priced To Begin 2025
Summary
- TMT stocks, especially the Mag 7, led 2024 gains, with NVIDIA, Meta, and Tesla outperforming significantly, contributing to OEF's 31% total return.
- Despite high valuation and concentrated allocation, OEF's technicals remain positive, with support around $275 and a bullish long-term trend.
- OEF's P/E ratio has risen to 23.5, and the PEG ratio is now 2.2, indicating a more expensive valuation despite solid growth prospects.
- Maintain a hold rating on OEF due to its robust technicals and relative strength, but advise diversification into SMID caps and non-US equities.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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