For some time now, the story has been mega-cap tech and the Mag 7, but that started to change in Q2 when you saw earnings broadening to other sectors outside of tech. Say hello to the Wonderful 111! “There are actually 111 stocks within the S&P 500 that are expected to grow earnings for Q3 above 15% and only four are Mag 7 companies,” said Eric Lynch, managing director at Scharf Investments during an appearance on October 29, 2024 on Reuters TV. We believe these non-Mag 7 companies are much more compelling from a risk/reward standpoint as their 2025 estimated valuations are half that of Mag 7 companies (15x vs 30x).

Go to Video

https://www.reuters.com/video/watch/idRW560829102024RP1/?chan=business