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- Mega-cap stocks are at their cheapest valuation in six years, Goldman Sachs wrote.
- Meanwhile, they're earnings season will outperform the typical S&P firm.
- The sector is likely to keep outperforming the index through at least 2025.
Mega-cap tech stocks are not only set to reverse their current downturn, they're likely to continue outperforming the broader market for years to come, Goldman Sachs analysts wrote in a note published Sunday.
While the sector's seven leading equities have dropped 20% from their July peak, they're now trading 1.3x higher than their price, earnings per share, and long term growth (PEG), below the average S&P stock's 1.9x ratio. It's a level reached only five times in the past decade, and the largest discount since 2017.