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# MegaCap-8 Continue To Impress
- URL: https://www.yardeniquicktakes.com/megacap-8-continue-to-impress/
- Published: 2024-02-07T03:00:19.000Z
- Updated: 2024-02-07T03:00:19.000Z
- Author: Ed Yardeni
- Tags: MegaCap-8, S&P 500 Earnings, Valuation

Through Friday’s close, the S&P 500 price index is up 4.0% ytd to a record high. The MegaCap-8 collectively has outperformed with a gain of 7.6%, also a record high (chart). Without the MegaCap-8 stocks, the S&P 500 would be up 2.5% ytd.

![](https://storage.ghost.io/c/16/ef/16efc0dd-240f-4f5e-9e01-d619d6fd4fd1/content/images/2024/02/gateway-30.png)

The MegaCap-8 now accounts for a record-high 28.3% of the S&P 500’s market capitalization (chart). They currently account for 18.5% of S&P 500 forward earnings and 10.8% of its forward revenues.

![](https://storage.ghost.io/c/16/ef/16efc0dd-240f-4f5e-9e01-d619d6fd4fd1/content/images/2024/02/tc_20240207_12.png)

Among the MegaCap-8 companies, all but Nvidia have reported their Q4 earnings so far. These seven MegaCap-8 companies collectively recorded earnings growth of 44.7% y/y and revenues growth of 11.4% y/y. Analysts had been expecting earnings and revenues to rise 36.6% and 9.7%, respectively.

Back in early December, the MegaCap-8 had surpassed its prior record-high forward profit margin of 21.4%, registered nearly 12 years earlier on January 4, 2013! It has moved even higher since then to 21.7% in early February (chart).

![](https://storage.ghost.io/c/16/ef/16efc0dd-240f-4f5e-9e01-d619d6fd4fd1/content/images/2024/02/tc_20240207_13.png)

At a forward P/E of 28.3 currently, the MegaCap-8 aren't cheap, but they are cheaper than during the pandemic (chart). With and without them, the S&P 500 forward earnings is 20.1 and 17.7.

![](https://storage.ghost.io/c/16/ef/16efc0dd-240f-4f5e-9e01-d619d6fd4fd1/content/images/2024/02/gateway-31.png)

These and other charts on the MegaCap-8 are automatically updated [here](https://yardeni.com/charts/sp-500-megacap-8/?ref=yardeniquicktakes.com). Charts for the eight stocks are also available at [Our Charts](https://yardeni.com/our-charts/?ref=yardeniquicktakes.com).

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