They’re some of the biggest names on the exchanges, and increasingly, analysts are calling on investors to step in and pick some of them up. Some of them are even somewhat attractively priced, at least, they would be if you were out buying, say, a microwave. They’re mega cap stocks, and though Sylvia Jablonsky of the Defiance ETF is calling for more buying, investors aren’t jumping on the pitch.
Jablonsky’s pitch is a little unexpected, a little optimistic, and out from left field. She notes that interest rates—some of the highest in months—will be “…a nuisance for a little while longer.” That seems in direct conflict with the “higher for longer” message coming out from the Fed, but let’s go with her theory for a bit. Jablonsky follows this assertion up with a much more rational point: mega-cap stock with already-strong balance sheets aren’t likely to be hit by whatever problem posed by higher interest rates. The 10-year rate, Jablonsky says, will more hurt growth companies than it will established companies.
She’s not alone here, either. Goldman Sachs strategists are already looking for a turnaround on this front. Several of the biggest in mega-cap stocks, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG) are already down on the year. Further, all are down in Tuesday afternoon trading as well. However, as the Goldman Sachs strategists note, these stocks are at some of the lowest prices seen in years, and could be in line for a ramp up.
Which Mega Cap Stocks are Good Buys Right Now?
Analysts consider all but Apple stock to be Strong Buys, but who’s offering the best in upside potential? The worst is currently Google stock, offering an upside potential of just 10.55% against its average price target of $147.43. Meanwhile, Nvidia stock is offering the best in upside potential, with its average price target of $644.69 producing a 48.02% upside potential.