NFLX - Big Tech is no longer expensive cyclical stocks are cheap now - Credit Suisse

The stock market selloff has brought multiples down to just marginally above the 50-plus-year average, Credit Suisse says. "At the start of the year, the 100 most expensive stocks in the S&P 500 (SP500) (SPY) traded at a premium of 25.8x multiple points to the rest of the market," U.S. equity strategist Jonathan Golub wrote in a note Wednesday. "Following the market’s correction, they currently trade at a 15.1x premium, in-line with long-term averages." Golub said Credit Suisse's TECH+ group has seen P/Es fall back to 3.9x from 7.7x in January, more towards long-term trends. TECH+ is an equal-weighted Russell 1000 (IWB) basket that includes traditional tech names found in SPDR Info Tech (NYSEARCA:XLK), but also Alphabet (GOOG) (GOOGL), Meta (META), Netflix (NFLX) and Amazon (AMZN), and not Tesla (TSLA). Internet Retail and Media have seen the biggest re-rating, Golub said. "Cyclical valuations are the most favorable of any group,

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Big Tech is no longer expensive, cyclical stocks are cheap now - Credit Suisse