The Roundhill Mag 7 ETF is trading at a forward price-to-earnings ratio below 24, its lowest level since its creation three years ago. Forward multiples for Amazon and Meta have fallen by more than a third, while Nvidia’s has nearly halved from one year ago. JPMorgan sees potential for a catch-up trade, with the group trading more than two standard deviations below its 2018 Q3 mean, implying approximately 30% upside to reach one standard deviation below mean and roughly 56% upside to return to average valuation. Apple stands out as an exception, with disappointing quarterly results and a higher valuation than a year ago, making it a potential short candidate according to Jefferies.
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