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Sell-Off: The 3 Cheapest Mag 7 Stocks Right Now

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Welcome to Episode #399 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

With S&P 500 selling off 10% from its 2025, which means it went into a correction, there are some stocks that might be deals now. That includes the Magnificent 7 stocks.

What are the cheapest Mag 7 stocks after the sell off?

Tracey looked at price-to-earnings (P/E), price-to-book (P/E), price-to-sales (P/S) and PEG ratios to see which of the 7 stocks were the cheapest.

She graded each on the individual categories and then on an overall basis.

There were some surprises.

Who are the Cheapest Mag 7 Stocks Right Now?

1. Tesla, Inc. (TSLA - Free Report)

As of the recording of the podcast on Mar 12, 2025, Tesla shares had fallen 38.7% year-to-date. Was there value there?

Tesla’s P/E had been above 100 last year, but after the sell-off, it fell to 77. That’s still pricey on a P/E basis as a P/E over 50 is considered extremely high. But Tesla’s price-to-sales (P/S) ratio is just 7.6. That’s the third lowest in the Mag 7.

Is Tesla among the cheapest of the Mag 7 stocks even with that sky-high P/E?

2. Amazon.com, Inc. (AMZN - Free Report)

Amazon shares had fallen 13% over the last month as of the recording of the podcast. With the sell-off, Amazon’s P/E has fallen to 31.1. That’s historically low.

But it’s Amazon’s price-to-sales ratio that stands out. It is just 3.2 which is the lowest among the Mag 7. And for a technology company, Amazon’s P/S ratio of 3.2 would be considered attractive.

Is Amazon among the cheapest of the Mag 7 stocks even with a P/E over 30?

3. NVIDIA Corp. (NVDA - Free Report)

As of Mar 12, 2025, NVIDIA shares were down 13.8% year-to-date. But NVIDIA is expected to grow earnings this fiscal year by another 46.8%. That has given NVIDIA a historically low P/E ratio for the company of just 24.8 at the time of the podcast.

NVIDIA also had a PEG ratio, at the time of the podcast, of just 0.97. This was the lowest PEG ratio among the Mag 7 stocks. A PEG ratio under 1.0 indicates a company has both value and growth. This is a rare combination.

You can legitimately call NVIDIA a “value” stock with that PEG ratio.

Has NVIDIA vaulted into the top of the list of the cheapest of the Mag 7 stocks as it continues to grow earnings?

4. Meta Platforms, Inc. (META - Free Report)

Meta Platforms was among the cheapest of the Mag 7 stocks on a fundamental basis in 2024, even though the stock rallied. But as of Mar 12, 2025, the shares were down 14.6% over the prior month. Is this a buying opportunity?

Meta Platforms now trades with a forward P/E of 22.7. This is the second lowest P/E among the Mag 7 stocks. And compared to most growth stocks, a P/E of 22.7 would be considered low. Meta Platforms also has an attractive PEG ratio of 1.2.

Is Meta Platforms still on the list of the top 3 cheapest Mag 7 stocks?

5. Alphabet Inc. (GOOGL - Free Report)

Alphabet has been among the cheapest of the Mag 7 stocks for over a year. Shares, as of the podcast’s recording on Mar 12, 2025, were down 11.7% year-to-date, making the stock even cheaper.

Alphabet had a P/E ratio of 18.4. It was the cheapest stock in the Mag 7 by P/E ratio and the only stock under 20. A P/E under 15 indicates the stock is a true value stock.

Alphabet also has a PEG ratio of just 1.18, which is the second lowest of the Mag 7 stocks. A PEG under 1.0 indicates value and growth, but Alphabet’s 1.18 is still low.

Does Alphabet retain its crown as the cheapest of the Mag 7 stocks after the sell-off?

What Else Do You Need to Know About Cheap Mag 7 Stocks?   

Tune into this week’s podcast to find out which are the 3 cheapest of the Mag 7 stocks.

[In full disclosure, Tracey owns shares of GOOGL, MSFT and AMZN in her personal portfolio.]

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