What is Howard Marks' concern about the S&P 500 valuation?

Howard Marks is concerned about the high average P/E ratio of 22 for non-Magnificent Seven stocks in the S&P 500.

Which stock has hit a new all-time high and outperformed the Mag 7?

Mueller Industries (MLI) has hit a new all-time high and achieved a 553.2% return in five years.

What was the average return of the Magnificent Seven stocks?

The average cumulative return of the Magnificent Seven was 292.8%, though Nvidia significantly boosted this number.

Home / Business and Economy / Stocks Soar Past Tech Giants: New Highs Beat Mag 7

Stocks Soar Past Tech Giants: New Highs Beat Mag 7

28 Nov

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Summary

Mueller Industries stock has achieved an all-time high, gaining 553.2% in five years.
Howard Marks questions the S&P 500's valuation due to average stock performance.
The average Mag 7 stock return was 292.8%, but Nvidia heavily skewed this figure.

Stocks Soar Past Tech Giants: New Highs Beat Mag 7

Recent market analysis highlights that stocks hitting new 52-week highs are demonstrating exceptional performance, with some even surpassing the returns of the much-discussed "Magnificent Seven" over the past five years. Mueller Industries (MLI), a manufacturer of industrial metal products, has reached an all-time high, boasting a cumulative return of 553.2% over the last five years. This significant growth surpasses the average performance of the top tech stocks.

This trend offers a counterpoint to concerns raised by credit investor Howard Marks. Marks has expressed worry not about the Mag 7, but about the valuation of the broader S&P 500 index, citing an average price-to-earnings ratio of 22 for non-Mag 7 companies. This figure significantly exceeds historical averages, suggesting potential overvaluation in the general market.

The "Magnificent Seven" collectively delivered an average return of 292.8%, though this figure is heavily influenced by Nvidia's substantial contribution. When excluding the highest and lowest performers among these seven, the average return drops to 153.2%. Mueller Industries' performance exemplifies how individual stocks can achieve extraordinary gains, challenging the narrative that only mega-cap tech companies are driving market success.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.