Despite tech sell-off, BMO still loves ‘FANG’ stocks for reasonable valuations, strong growth


The Netflix emblem is seen on their workplace in Hollywood, Los Angeles, California, July 16, 2018.

Lucy Nicholson | Reuters

Rising rates of interest and a burgeoning financial restoration have led traders to spurn tech stocks for worth names, however BMO believes there’s upside forward for the likes of Alphabet and Netflix.

“We Still Love FANG,” the agency stated in a latest observe to purchasers. “We suppose FANG is out of consensus and is positioned to outperform in 2021 as traders come for reasonable valuations, continued income growth ~20%, and plentiful FCF [free cash flow].”

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