Meet the Only “Magnificent Seven” Stock That Is Cheaper Than the S&P 500 (According to This Key Metric)

From Nasdaq: 2025-06-27 06:17:00

The “Magnificent Seven” are the top tech-focused companies by market cap – Nvidia, Microsoft, Apple, Amazon, Alphabet (GOOG, GOOGL), Meta Platforms, and Tesla. They’ve outperformed the S&P 500, with Microsoft hitting a new all-time high. In 2025, Apple and Alphabet are underperforming, making Alphabet a bargain compared to the S&P 500.

Alphabet’s forward P/E ratio of 17.4 is lower than the S&P 500’s 21.8, making it undervalued. Despite concerns about Google Search’s dominance, Alphabet’s AI tools like Gemini are improving, suggesting growth potential. The stock is a strong buy for long-term investors, offering a cheap entry point.

Consider investing in Alphabet now. The company’s stock is discounted compared to the S&P 500, with strong growth potential. The Motley Fool’s top 10 stock picks don’t include Alphabet, but historical returns show the potential for significant gains. Don’t miss out on the opportunity to invest in strong performers.



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