Tech stocks have been on a tear lately and will continue to outperform the broader market for two key reasons, according to Goldman Sachs.
The first reason analysts at Goldman cited is sales and earnings growth. “Current relative valuation may restrain upside, but superior sales and EPS growth prospects coupled with a larger weight in technology suggests NDX [Nasdaq 100] total return of +2 percent vs. -1 percent for S&P 500 in the next 12 months,” Goldman’s chief U.S. equity strategist, David Kostin, said in a Friday note.
