SPGP - SPYG: S&P 500 Growth Stocks Are Pricey But Still Worth It
2024-07-06 00:09:29 ET
Summary
- SPYG tracks the S&P 500 Growth Index, selecting S&P 500 stocks that feature solid sales and earnings growth rates, strong price momentum, and high valuations.
- Historically, it's underperformed many peers over the long run because of its price momentum screen, but based on my analysis, that shouldn't factor much into the end-of-year rebalancing.
- That leaves investors with a portfolio of stocks with competitive historical and estimated sales and earnings growth rates, slightly below-average valuations, and strong sentiment on Wall Street.
- As it's designed now, I see SPYG continuing to outperform like it has for the last six months, and therefore, I have assigned it a "buy" rating.
- This article also includes the long-term performance results and growth statistics for dozens of other large-cap growth alternatives.