🔍 The Mag 7: Which Stocks Are Most Attractive?
Some are really interesting. Others aren’t. Here’s how we rank the Magnificent 7 ⭐️
For years, The Magnificent 7 have dominated the market. They still make up a large part of the S&P 500 and have been responsible for a big share of the returns. But recently, something has started to shift. Not in their businesses, but in their stock prices. A number of these stocks have dropped significantly from their highs. So what’s actually going on?
They are often seen as one group, but they are no longer moving in the same way. Some are now much more attractive than others.
In this article, we take a closer look at:
📉 How far these stocks have fallen and why they’ve come down
📊 What the growth expectations are for the Mag 7
🔢 And how we rank the Mag 7 from #7 to #1
📉 The Drop
The Magnificent 7 are no longer trading near their highs. After a strong run over the past few years, these stocks have come down. Many of them are now down double digits from their all-time highs:
Amazon: -7.8% 📉
Alphabet: -9.1% 📉
Apple: -9.8% 📉
Nvidia: -11.1% 📉
Meta: -20.9% 📉
Tesla: -30.1% 📉
Microsoft: -33.2% 📉
The S&P 500 is only 2.6% below its all-time high, which shows how much bigger the declines have been in these stocks.
The chart below shows the recent drop in the Magnificent 7 compared to the rest of the market. But zoom out, and they’ve still significantly outperformed the market over the past 10 years.
Source: Yardeni Research, Magnificent 7 performance vs S&P 500
What’s behind the drop in Mag 7 stock prices? There are a few clear reasons:
1️⃣ Geopolitics
The situation around Iran has pushed oil prices higher, which brings more uncertainty to the market and puts pressure on growth stocks.
2️⃣ AI investments
Big Tech is set to spend around $600–700 billion this year on AI infrastructure, and investors are starting to question the returns.
3️⃣ Tariffs & trade
Trump’s tariff plans increase costs for companies and create uncertainty around global trade. That puts pressure on earnings expectations and stock prices.
In uncertain times, Big Tech stocks often get hit harder. Over the past month, investors have been rotating into “defensive” parts of the market, such as value stocks, energy and consumer staples. This creates opportunities for investors with a long-term horizon.
📊 The Expectations
We’ve seen that Magnificent 7 stocks have come down, all of them more than the S&P 500. But maybe that’s justified. To understand that, we need to look at expectations, in this case, earnings growth.
The chart below shows expected earnings growth over the next 12 months for the Mag7, the S&P 500, and the S&P 500 ex-Mag 7.
Source: Yardeni Research, Magnificent 7 vs S&P 500 Forward Earnings Growth
The Magnificent 7 are still expected to grow faster than the rest of the market. Over the next 12 months, earnings are expected to grow around 23.6% for the Mag 7, compared to 16.1% for the S&P 500 ex-Mag 7.
We’ve just seen that many of these stocks have fallen well below their highs. Strong growth and lower prices mean that the Mag 7 stocks have become more attractive. But not all of them. So which ones stand out right now?
We’ve done the work and ranked the Magnificent 7 from least to most attractive (#7 → #1) 🏆
Let’s start with #7 🔍👇
#7: Tesla (NASDAQ: TSLA)
Tesla is by far the most expensive stock within the Magnificent 7. With a forward P/E of 172, a PEG ratio of 4.65, and a P/FCF of 210, the valuation is far above the rest of the group.
Tesla is not being valued as a traditional car manufacturer. Investors are paying for Elon Musk’s long-term vision. That includes projects like the robotaxi and the Tesla Optimus, both with huge potential, but also a lot of uncertainty around timing and execution.
Based on current results and expectations, the stock looks very expensive. Tesla still needs to prove it can deliver on this vision. If not, the stock could be revalued lower, but if it does, the potential is still significant.
Metrics 📊
P/E (NTM): 172.2
PEG-ratio: 4.65
P/FCF: 210.5
EPS 5Y Forward Growth: 37.0%
#6: Apple (NASDAQ: AAPL)
Apple is still trading at a high valuation, and growth is limited. With a forward P/E of 30, a PEG ratio of 2.73, and a P/FCF of 31, the stock looks expensive for a company expected to grow earnings by 11% over the next five years.
Apple does not yet have a clear AI strategy that supports future growth, but that could change. Apple has a massive iPhone user base, which gives it a strong position to launch new products and services.
Based on current expectations, the mix of high valuation and lower growth makes the stock less attractive. There is still potential, but Apple needs a new growth driver, likely in AI, to justify its valuation.
Key Metrics 📊
P/E (NTM): 30.3
PEG-ratio: 2.73
P/FCF: 31.0
EPS 5Y Forward Growth: 11.1%
With Tesla at #7 and Apple at #6, we’re left with five Mag 7 stocks: Microsoft, Nvidia, Alphabet, Amazon, and Meta. Which ones are the most attractive right now?
This part of the article is exclusively available to paid subscribers ✨
Upgrade now to discover our full ranking (#5 → #1) 👇
🔥 Upgrade Now and Save 30%!
Get instant access to this article, our Portfolios & Transactions, our monthly Best Buys, all Deep Dives, all Stock Battles — plus 375+ premium articles to explore!
✅ Already trusted by 4,500+ investors.
The top 3 names look like screaming buys 🔥
But let’s start with #5 first 👇