When investors talk about the SP 500, they automatically talk about the big technology companies that move it. In fact, the 10 largest companies in the American index account for 36% of its value and 9 are technology companies.
And this last month has been the final season of results in the US, where 83% of the companies have met the high demands of the market and have beaten the expected earnings per share. So they have been removing the ghost of the AI bubble, despite some statements from large institutional investors. And that investors should not despise at all, at least be able to analyze whether their investment theses are still valid.
The magnificent 7 and 4 more actions have been the ones that have pulled the SP 500 bandwagon in recent years.. Without going any further, the SP companies that have risen the most in the last 12 months We see some of the usual suspects again, Alphabet, Palantir, Micron Technology…. Yes, some of them with returns of over 100% in 12 months.
But something seems to be changing in the last month, given that The stocks that are gaining the most on the stock market are not the big technology ones.
The market is turning around and look the winners of the last month in the SP 500. We began to have less technological and more pharmaceutical, although Alphabet is still in the top 10 in profitability.
We can see how in the strongest sectors of the US stock market. According to our premium indicators, we find that health care is the strongest at the moment and above all it has an upward trend in the medium and long term in the stock market.
The technology, strong standard, seems to have lost a bit of gas at the moment.
And how is the winner of the month in the stock market, Ely Lilly?
Well, it has been strong since last October 30, when the indicator went from neutral to strong. Since that day, the value has risen almost 30% on the stock market.
As long as the indicator continues to tell us that the stock is strong, this stock is clearly bullish.
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