In an effort to navigate a market that remains highly concentrated under Big Tech's dominance, but also ripe for stock pickers, Barclays has dozens of stocks that share similar characteristics to the tech heavyweights.
However, some select Big Tech remained fairly strong throughout the sell-off, with stocks like Alphabet and Apple bucking the downtrend.
While Big Tech valuations still appear reasonable to Barclays analyst Venu Krishna, he pointed out that they're "not the only game in town," and suggested investors diversify their portfolios to beat their benchmarks.
Yet, market returns, earnings upside, and institutional investor exposure remain highly concentrated in Big Tech," Krishna said in a Tuesday note.
Aside from allowing investors to diversify, these stocks come with strong fundamentals based on profitability, balance sheet strength, cash conversion, and growth-adjusted valuation characteristics that closely resemble those of Big Tech stocks, the firm said.
Persons:
Venu Krishna, Krishna, Dennis Geiger, Geiger, outperformance, Adrienne Yih, Yih, Goldman, TJX
Organizations:
Barclays, Big Tech, Inter, UBS, Software, Oracle, Arista Networks, JPMorgan, Arista, TJX Companies, Goods
Locations:
Big Tech, SPX, Ulta