According to Gary Black, within the Mag 8, $GOOG led 1-year performance at +72%, $AVGO followed at +61.5%, while $MSFT lagged at -4% (source: Gary Black on X). According to Gary Black, $META screens cheapest on 2026 P/E at 22.2x and on forward PEG at 1.3x, whereas $TSLA is richest at 200x 2026 P/E but carries the fastest projected EPS growth at +43% with a 2026 forward PEG of 4.7x (source: Gary Black). According to Gary Black, the S&P 500 trades at a 2026 P/E of 22.4x with a 4.46% earnings yield versus a 10-year Treasury yield of 4.23%, implying a 23 bp equity risk premium compared with a 50–75 bp historical range (source: Gary Black). For traders, this setup highlights relative value in $META on valuation metrics, momentum leadership in $GOOG, and valuation risk in $TSLA despite growth, while a slim ERP suggests heightened sensitivity to rate moves (source: Gary Black).

According to @QCompounding, Joel Greenblatt’s Magic Formula is a simple, disciplined way to find good companies at great prices by targeting high return on capital and high earnings yield for portfolio selection; this aligns with the book’s framework for systematically ranking and buying quality value stocks. Source: @QCompounding. The book defines return on capital as EBIT divided by tangible capital and earnings yield as EBIT divided by enterprise value, ranks stocks on both metrics, buys a basket of roughly 20–30 top-ranked names, and rebalances about annually to maintain exposure to high-quality, attractively priced stocks. Source: Joel Greenblatt, The Little Book That Still Beats the Market (2010 revised edition). Greenblatt’s implementation uses clear screening rules with basic liquidity and market-cap filters and excludes sectors with atypical accounting (e.g., many financials and utilities), making the approach executable as a periodic rebalance across a defined equity universe. Source: Joel Greenblatt, The Little Book That Still Beats the Market (2010 revised edition); MagicFormulaInvesting.com.