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What Are President Trump’s ‘MAGA' Stocks and Are They Good Picks?

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Trump touted the ‘MAGA’ stocks as reflective of a strong stock market at a White House press briefing, Wednesday. These stocks have outperformed the market in the past year and could be decent picks going forward.

Trump mentioned the recent stock market run, as the S&P 500 is up 23% in the past year, saying “it means 401K’s, it means jobs. Four trillion-dollar companies: Apple Amazon, Google, Microsoft, you have MAGA. The trillion-dollar club.”

The S&P 500 recently has run up more than 4% in 2020, extending strong gains in 2019, as many indeed see reaccelerating economic growth in 2020.

The ‘MAGA’ stocks have outperformed the S&P 500 in the past year:

Microsoft: +72%

Amazon: +32%

Google: +33%

Apple: +89%

And while some are growing cautious on those names, as they’ve lead the more than 10-year bull run. But analysts see more upside to come, upside that could challenge a stock market that strategists forecast only about 5% upside for the entire 2020 fiscal year.

Given average analyst price targets for the ‘MAGA’ stocks, here’s the implied upside for these names:

Microsoft: +7%

Amazon: +11%

Google: +5%

Apple: +4%

Importantly, many analysts see upside to their current forecasts for those stocks. And it’s not unreasonable to expect price targets to move higher each quarter, as strong earnings on a rolling 12-month basis is in the cards for these stocks. While they are tech stocks — some of which are still closer to grow than value — they’re also quality stocks, with a stable stream of cash flows. They also trade at earnings multiples lower than their historical levels , but have new growth drivers like the cloud for Microsoft and services and 5G for Apple. Amazon, along with Walmart and Target, is driving the entire e-commerce market up again with fast delivery times.

Interesting picks by Trump. 

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