From Nasdaq: 2025-03-31 13:49:00

The US stock market is facing a significant correction due to trade policy uncertainty and economic growth concerns. Tech giants like Amazon, Meta Platforms, and Microsoft are leading the market lower, prompting discussions on overconcentration and valuations. For long-term investors, this may present an opportunity to accumulate positions.

Meta Platforms stands out as the best performer among the Magnificent Seven, with strong earnings and sales growth projections. Apple, despite being the largest company, has slower growth but trades at a premium valuation. Microsoft offers steady growth and a slight premium valuation compared to its historical norm.

Amazon, down over 15% year-to-date, boasts high earnings growth forecasts and trades at a deep historical discount. Alphabet, one of the weaker performers, has a cheap relative valuation compared to its peers. Nvidia, previously a top performer, is now cooling off but still has strong earnings and revenue growth projections.

Tesla, the worst-performing stock, maintains high earnings growth forecasts but trades at a steep premium. Despite all stocks having a Zacks Rank #3 (Hold), Meta Platforms, Amazon, and Alphabet are seen as the most attractive based on a mix of growth potential, reasonable valuations, and resilient business models. These three stocks may offer the best balance of upside potential and downside protection for long-term investors.



Read more at Nasdaq: How Cheap Are Big Tech Stocks?