![Wall Street Still Loves the 'Big Seven'](https://news7g.com/wp-content/uploads/2024/08/107248719-1685720283890-107248719-16855514912023-05-30t214647z_1997661031_rc2191azqu7e_rtrmadp_0_usa-stocks-780x470.jpg)
Make no mistake: Wall Street’s love affair with the “Big Seven” is still going strong. DataTrek Research co-founder Jessica Rabe points out that, based on FactSet data, the average price target from analysts on the large-cap tech group implies a 14.4% gain over the next 12 months. That’s a bigger gain than strategists are forecasting for the entire S&P 500, which is up 11.9%. The expected gains for the Big Seven are also larger than those for stocks outside the group. DataTrek looked at the 10 largest non-tech stocks in the S&P 500, and found that the price target for those stocks suggests an average gain of 9.9%. “While we take analysts’ price targets seriously (as you should), they indicate that Wall Street sees greater upside potential for Big Tech (minus TSLA) than for the S&P as a whole or the average of its 10 largest non-tech names,” Rabe wrote in a note Wednesday. “That’s good news for US public equity investors, as those six Big Tech names have a combined weighting more than double that of the latter group.” In recent weeks, investors have been rotating out of the early Big Tech winners of 2024 and into beaten-down areas of the market. That dynamic is reflected in the relative outperformance of the equal-weighted S&P 500 relative to its market-cap-weighted counterpart. The equal-weighted version of the S&P 500 is down just 0.5% over the past month. The market-cap-weighted version is down 3.2% in that time. .SPX RSP 1M mountain SPX vs. RSP over the past month Despite the rotation, Wall Street analysts still believe that holding onto large-cap tech stocks is the better bet. Elsewhere on Wall Street this morning, Stifel upgraded Starbucks from buy to hold after naming Brian Niccol as its new CEO. “We believe Starbucks remains a healthy and relevant brand across most generational groups, but it lacks a coherent growth strategy and has struggled to execute. Upon arrival, we expect Mr. Niccol’s top priority will be reversing the negative trading trend in the US,” the firm said.