Hold On, Stocks are Going Higher

Market Overview - Investors are currently optimistic as broad equity indexes are approaching all-time highs following a brief -6% selloff in the S&P 500, indicating the bull market remains intact [1] - The US economy is robust despite record high interest rates, with household wealth at all-time highs and government spending on infrastructure projects [1] Consumer and Government Spending - Rising consumer and government spending are driving earnings growth, with expectations of falling interest rates increasing market liquidity [2] - The current bull market is considered to be in its early stages, with many businesses trading at reasonable valuations [2] Company Highlights Alphabet (GOOGL) - Alphabet has received significant upgrades to its earnings estimates, with FY24 estimates climbing nearly 12% and projected EPS growth of 17.2% annually over the next 3-5 years [3] - The stock has outperformed the Nasdaq index and is forming a bullish pattern, indicating potential for further gains [3] PDD Holdings (PDD) - PDD Holdings has seen explosive revenue growth from $2 billion in 2018 to $35 billion last year, with expectations of 50% sales growth this year and 35% next year [7] - The company has received a Zacks Rank 1 (Strong Buy) rating, with current quarter earnings estimates revised higher by 27% [7][10] - PDD is trading at a forward earnings multiple of 16.5x, significantly below the market average, and has a PEG ratio of 0.3, indicating attractive valuation relative to growth [10] PulteGroup (PHM) - PulteGroup has also achieved a Zacks Rank 1 (Strong Buy) due to upward trending earnings revisions, benefiting from a housing market with significant supply shortages [11] - The company is trading at a forward earnings multiple of 9.2x, slightly below its 10-year median, with anticipated EPS growth of 17.7% annually over the next 3-5 years, resulting in a PEG ratio of 0.52 [12] Investment Strategy - A diversified investment approach is recommended, including exposure to big tech (Alphabet), housing (PulteGroup), and Chinese e-commerce (PDD Holdings), allowing for potential performance balance across sectors [14]