lechatnoir
Analysts keep pushing out the so-called broadening out of earnings growth. Goldman Sachs put out a research note this week noting that 2025 S&P 493 EPS is expected to have fallen shy of the Mag 7’s EPS by a
SCHG: Expecting A Pause In The Growth Trade, Eyeing A Buying Opportunity
Summary
- I have a hold rating on SCHG due to stretched valuations and technical signals suggesting potential consolidation or correction.
- The Mag 7's EPS growth is expected to outperform the S&P 493, benefiting large-cap growth stocks like those in SCHG.
- SCHG's valuation metrics, including a high P/E ratio and PEG ratio, indicate potential overvaluation despite its high-quality holdings.
- Technical analysis shows SCHG may face a correction to the 200-day moving average, with a possible dip to $23 in a bearish scenario.
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