The Bid

257: Beyond The Magnificent Seven: Discovering Equity Opportunities in The S&P 493

9 snips
Apr 10, 2026
Guest
Ibrahim Kanan
Ibrahim Kanan, Head of U.S. Core Equity at BlackRock with expertise in U.S. equities and active stock selection. He explores the S&P 493 — companies outside the mega caps. Discussion covers why earnings growth is broadening, how AI spending spreads across sectors, where opportunities appear in industrials, healthcare, consumer and financials, and why stock selection now matters more.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Historic Market Concentration In The S&P 500

  • The S&P 500 top 10 stocks now represent ~40% of the index, the highest concentration in over 100 years.
  • Ibrahim Kanan notes this makes the index effectively dominated by 10 companies, reducing exposure to many large U.S. firms.
INSIGHT

Big Companies Can Be Tiny In The Index

  • A $200 billion U.S. company today represents only ~0.2% of the S&P 500, making many sizeable firms nearly invisible in the index.
  • Ibrahim contrasts this with Europe where such a company would be a top holding, highlighting U.S. top-heaviness.
INSIGHT

Earnings Growth Has Narrowly Been Driven By MAG-7

  • MAG-7 drove almost all S&P earnings growth in 2023–24; excluding them the S&P would have shown no earnings growth.
  • The remaining companies grew ~10% last year and are expected to grow >10% this year, signaling convergence.
Get the Snipd Podcast app to discover more snips from this episode
Get the app