MarketPR
A sideways market and rising earnings have positioned the technology sector for conditions that Truist says resemble an opportunity not seen since ChatGPT first launched.
The firm's read is that a reset in the sector has made technology more attractive on a relative basis to the broader market. For the markets reader, the setup hinges on whether that earnings trajectory holds.
The argument Truist is making comes down to divergence between price and earnings.
When a market moves sideways and earnings continue to climb, a sector's multiple compresses against its growth profile without requiring a sharp sell-off to create the gap.
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