Earnings season is here, and the Magnificent 7 stocks are in focus. While some call them defensive plays, they are not classic value stocks. Two of these stocks have great earnings track records, with just 1 miss in the last 5 years.
Among the Mag 7 stocks, Tesla will be the first to report earnings. Despite a shaky earnings surprise track record, Tesla’s shares have rebounded this year, up 17.6% YTD.
Microsoft is an earnings all-star, with only one miss in the last 5 years. Expected to grow earnings by 12.9% this year, Microsoft has a stretched P/S ratio of 13.5.
Alphabet has missed on earnings 4 times in the last 5 years. With expected earnings growth of 23.6% in 2025, Alphabet is attractively priced with a forward P/E of 25.
Meta Platforms has a strong earnings track record, beating estimates 11 quarters in a row. While expected to grow earnings by 18% this year, Meta Platforms is considered expensive with a P/S ratio of 10.1.
Apple has a great earnings surprise record, with just one miss in the last 5 years. Shares are at an all-time high, but with a forward P/E of 32, Apple is not cheap.
Amazon is the worst performer among the Mag 7 stocks this year, down 2.4% YTD. However, it has the cheapest P/S ratio at 3.4, making it the most affordable of the group.
The AI revolution is evolving, with new opportunities in little-known AI firms. These companies may offer more lucrative investments compared to well-known stocks in the future. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by 500 points. This was attributed to concerns over rising inflation and interest rates, leading to investors selling off their stocks in a panic.
2. A new study has found that the COVID-19 vaccine is highly effective in preventing severe illness and death. The study analyzed data from over 100,000 individuals who received the vaccine, with a 95% reduction in hospitalizations and deaths among those who were fully vaccinated.
3. In sports news, the hometown team secured a spot in the playoffs with a thrilling victory over their rivals. The star player scored a game-winning goal in the final seconds, sending fans into a frenzy and solidifying the team’s position in the postseason.
4. The latest weather report indicates that a severe storm is expected to hit the region tomorrow, with heavy rain and strong winds forecasted. Residents are advised to take precautions and stay indoors during the storm to ensure their safety.
Read more at Nasdaq: The Mag 7 Stock Charts: Which are Hot?