From Nasdaq: 2024-11-11 06:45:00

In recent years, the “Magnificent Seven” group of stocks, including Nvidia, Apple, Microsoft, Alphabet, Amazon, Meta Platforms, and Tesla, have led the market with outstanding returns. However, some of these stocks have become pricey due to increased valuations.

Alphabet stands out as the cheapest member of the group, trading at just 22 times forward earnings compared to the S&P 500’s 23.8 times. With strong Q3 performance, including a 10.4% rise in ad revenue and a growing Google Cloud segment, Alphabet shows potential for growth.

Alphabet’s Q3 was exceptional, with revenue up 15% and an improved operating margin of 32%. Compared to other “Magnificent Seven” stocks, Alphabet outperformed in earnings growth and trades at a discount. If valued like its peers, Alphabet would be the world’s largest company.

Despite its dominance, Alphabet remains undervalued compared to its peers. With a cheap stock price, strong growth potential, and solid Q3 performance, Alphabet is positioned to outperform the market. This makes it a top pick among the “Magnificent Seven” stocks to buy right now for long-term gains.



Read more at Nasdaq: 1 “Magnificent Seven” Stock That’s a Screaming Bargain Right Now