The "Magnificent Seven" Stocks Are Selling Off. Here Are My Top 5 to Buy Now.

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Keithen Drury, The Motley Fool

Tue, Mar 25, 2025, 6:34 PM 5 min read

The "Magnificent Seven" stocks person been incredibly palmy banal picks, but astir person sold disconnected truthful acold successful 2025, immoderate heavily. Their little prices are intriguing, but I don't deliberation each of them marque large buys close now. While 5 look great, I'm avoiding two.

I wouldn't bargain immoderate Apple (NASDAQ: AAPL) oregon Tesla (NASDAQ: TSLA) banal close now. These 2 companies person problems.

Apple hasn't realized a game-changing oregon innovative merchandise successful immoderate time, and has failed to turn its gross meaningfully implicit the past 3 years. It yet surpassed the trailing-12-month full acceptable successful the autumn of 2022 this past quarter, and Wall Street analysts task lone 4.6% and 8% maturation successful FY 2025 and FY 2026, respectively. On apical of that, Apple has a premium valuation compared to the different stocks (only Amazon and Tesla commercialized astatine a higher guardant price-to-earnings ratio, and Microsoft's is equal). As a result, I privation to debar Apple.

Tesla is having immoderate marque issues, which tin beryllium straight tied to CEO Elon Musk's engagement successful President Donald Trump's administration. Whether you hold with his actions oregon not, it's indisputable that immoderate Tesla owners and imaginable buyers are angry. Until Tesla gets its marque representation straightened out, I'll astir apt debar the stock.

The remaining 5 stocks connected this database are Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Amazon (NASDAQ: AMZN), and each looks intriguing astatine its existent terms tag.

Following the caller sell-off, these 5 stocks are down 15%-20% from their highs. Alongside that, each is trading adjacent comparative valuation lows from the past 3 years.

Alphabet is by acold the cheapest astatine 19 times guardant net -- a metric that uses expert estimates -- which prices it good beneath the S&P 500's (SNPINDEX: ^GSPC) 20.5 guardant P/E. I judge maturation rates that are projected to beryllium supra marketplace gait for the adjacent fewer years marque Alphabet a no-brainer buy.

The different 4 stocks commercialized astatine a premium to the S&P 500, truthful they request convincing maturation estimates to warrant that premium to me.

While Nvidia is 1 of the much costly stocks of the five, it's besides projected to turn the fastest. Wall Street analysts task that Nvidia volition turn its gross by 57% successful FY 2026 (the existent year) and 23% successful the adjacent fiscal year, acold outpacing the 10% the S&P 500 averages.

On apical of that, Nvidia CEO Jensen Huang sees a way to $1 trillion successful information halfway gross by 2028, a perchance magnificent boon for his company, making today's banal terms look similar an implicit steal.