Looking back, the S&P 500 index has had a strong performance in 2023.
As of Fri, 14 Jul 2023, it has gained +17.82% year-to-date (YTD), see below.
S&P 500 - YTD performance
Of the index’s 500 companies, Technology sector has been the best performing sector; rising by +21.65% by Q1 2023.
Some of the biggest gainers include:
These companies have benefitted from:
Strong earnings.
Semiconductor industry performance.
Artificial intelligence (AI) applications.
Cloud computing services.
However, analysts are sounding alarms on three of the S&P 500 behemoths.
(1) $Apple(AAPL)$.
AAPL - YTD performance
Apple started 2023 at the bottom, chalking its lowest on Thu, 5 Jan 2023 at $125.02 per share.
It closed the week’s trading on Fri, 14 Jul 2023 at $190.69 per share.
It has gained a whooping +52.47% or +$65.62 per share to date.
Looking at above chart, it has a linear growth - don’t you agree?
With its “RSI” reading “63”, Apple still has about +7 points to gain, before its RSI reaches the “70” mark that is the start of “overbought” signal.
Apple is the first S&P 500 company to exceed $3 Trillion in market value.
However, analysts think it's gone too far.
According to analysts, Apple's stock price is now +2.3% higher than what they think the company should be worth in 12 months.
(2) Meta Platform Inc.
Meta Platform - YTD performance
Meta start 2023 at the bottom, chalking its lowest on Tue, 3 Jan 2023 at $124.74 per share.
It closed the week’s trading on Fri, 14 Jul 2023 at $308.87per share.
It has gained a whooping +147.61% or +$184.13 per share to date.
Looking at above chart, it has a linear growth; just like Apple - don’t you agree?
With its “RSI” reading “71”, Meta is officially in the “overbought” zone.
However, analysts think it's gone too far.
According to analysts, Meta’s stock price is nearly +5% overvalued; above what they think Meta should be worth in 12 months.
(3) Tesla, Inc.
Tesla - YTD performance
Meta start 2023 at the bottom, chalking its lowest on Tue, 3 Jan 2023 at $108.10 per share.
It closed the week’s trading on Fri, 14 Jul 2023 at $281.38 per share.
It has gained a whooping +160.30% or +$173.28 per share to date.
Unlike Apple & Meta where both has an almost “perfect” linear growth, Tesla’s YTD performance is has its peaks & troughs throughout first half of 2023.
With its “RSI” reading “68”, Tesla still has about +2 points to gain, before its RSI reaches the “70” mark that is the start of “overbought” signal..
However, analysts think it's gone too far.
According to analysts, Meta’s stock price is +24% past what it should be worth in 12 months.
My Personal View:
Having been around the blocks a few times:
Technical analysis and Market sentiments could be two very different things.
Although the technical “RSI” may point to the 3 stocks as “overbought” or “closed to overbought”.
When market sentiments are still “robust”, the stocks’ prices may continue to rise; technically sliding “deeper” into “overbought" territory, that’s all.
This implies, given the above scenario, as individual investor, we have to be more cautious compared to when in 2022.
Do you think now is the time to sell the 3 stocks as recommended by analysts?
Do you think analysts have also gotten it right, most of the time?
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分析師的話聽聽就好了自己要有判斷的能力 [抠鼻] [抠鼻] [抠鼻] [抠鼻]
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