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Welcome to Episode #502 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey was joined by Zacks Stock Strategist, Ethan Feller, to discuss the “return” of the Magnificent 7 stocks.
First there was FAANG, then FANGMAN which morphed into the Magnificent 7 (“Mag 7”) when investors wanted Tesla added to the list of popular big cap stocks.
The Magnificent 7 has been around several years. It has seven trillion-dollar market cap companies in it including Apple, Amazon, Alphabet, Meta Platforms, NVIDIA, Microsoft, and Tesla.
Earlier this year, it seemed like the Mag 7 was going to die. The stocks were struggling as the hyperscalers spent billions of dollars building out the AI Revolution infrastructure, including buying chips and building data centers. Few were talking about the Mag 7 as a group anymore.
But in Sep 2026, several of the Mag 7 stocks soared and the Magnificent 7 ETF (MAGS) hit a new high. Suddenly, the Mag 7 was back in the news and investors were looking at the “sure thing” stocks again, even if they were spending most of their cash on the AI build-out.
Meta Platforms has picked up momentum after it launched Muse in Sep 2026. Muse is a new AI agentic product that is designed to make your life easier. Millions of people have downloaded Muse since the launch, pushing it to the top of the Apple App store.
Shares of Meta Platforms are up 25.5% in the last month and have now risen about 10% year-to-date. Earnings are expected to jump 33.6% this year on revenue which is forecast to rise 26.4%.
Meta Platforms is attractively priced for a Mag 7 growth stock with a forward price-to-earnings (P/E) ratio of 23.
Meta Platforms is Ethan’s top pick among the Mag 7 stocks.
NVIDIA’s growth never seems to slow. Earnings are expected to jump another 93.9% in fiscal 2027 after soaring 59.5% in fiscal 2026 and 130% in fiscal 2025.
Shares of NVIDIA are still grinding higher. While it’s only up 6.2% in the last month, it has added another 23.8% year-to-date.
It’s attractively priced, trading with a forward P/E of 24.7. While this isn’t a value stock, because those trade at 15x and under, for NVIDIA, this is a historically low P/E. Investors are buying the red-hot growth.
NVIDIA also recently announced another $150 billion for its share repurchase program.
It’s no surprise if you’ve seen other Market Edge Podcasts, but NVIDIA is Tracey’s top pick among the Mag 7 stocks.
Should NVIDIA, once again a Zacks #1 Rank (Strong Buy) stock as analysts raise earnings estimates, be on your short list?
Microsoft is a sleeper. It’s a software company but is also building AI infrastructure. Earnings are expected to rise 9.3% this fiscal year, which doesn’t sound that great, but that’s coming on top of last year’s 31.6% gain.
Shares of Microsoft were left for dead earlier in the year but have rebounded 34.7% in the last three months. However, year-to-date, it’s up just 5.9%.
Many worried about Microsoft’s valuation in the last few years as it traded with a forward P/E above 30. But the recent share price action has brought down the valuation. Microsoft now trades with a forward P/E of just 26.
Microsoft was Ethan’s second top pick in the Mag 7.
Should the dot-com superstar Microsoft be on your short list during the AI Revolution?
What Else Do You Need to Know About the Mag 7 Right Now?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of MSFT, AMZN and GOOGL in her own personal portfolio.]
View the Zacks #1 Rank List
Image: Bigstock
Our Favorite Mag 7 Stocks to Buy Right Now
Key Takeaways
Welcome to Episode #502 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey was joined by Zacks Stock Strategist, Ethan Feller, to discuss the “return” of the Magnificent 7 stocks.
First there was FAANG, then FANGMAN which morphed into the Magnificent 7 (“Mag 7”) when investors wanted Tesla added to the list of popular big cap stocks.
The Magnificent 7 has been around several years. It has seven trillion-dollar market cap companies in it including Apple, Amazon, Alphabet, Meta Platforms, NVIDIA, Microsoft, and Tesla.
Earlier this year, it seemed like the Mag 7 was going to die. The stocks were struggling as the hyperscalers spent billions of dollars building out the AI Revolution infrastructure, including buying chips and building data centers. Few were talking about the Mag 7 as a group anymore.
But in Sep 2026, several of the Mag 7 stocks soared and the Magnificent 7 ETF (MAGS) hit a new high. Suddenly, the Mag 7 was back in the news and investors were looking at the “sure thing” stocks again, even if they were spending most of their cash on the AI build-out.
Which Mag 7 Stocks Should Be on Your Short List?
1. Meta Platforms, Inc. (META - Free Report)
Meta Platforms has picked up momentum after it launched Muse in Sep 2026. Muse is a new AI agentic product that is designed to make your life easier. Millions of people have downloaded Muse since the launch, pushing it to the top of the Apple App store.
Shares of Meta Platforms are up 25.5% in the last month and have now risen about 10% year-to-date. Earnings are expected to jump 33.6% this year on revenue which is forecast to rise 26.4%.
Meta Platforms is attractively priced for a Mag 7 growth stock with a forward price-to-earnings (P/E) ratio of 23.
Meta Platforms is Ethan’s top pick among the Mag 7 stocks.
Should Meta Platforms be on your short list?
2. NVIDIA Corp. (NVDA - Free Report)
NVIDIA’s growth never seems to slow. Earnings are expected to jump another 93.9% in fiscal 2027 after soaring 59.5% in fiscal 2026 and 130% in fiscal 2025.
Shares of NVIDIA are still grinding higher. While it’s only up 6.2% in the last month, it has added another 23.8% year-to-date.
It’s attractively priced, trading with a forward P/E of 24.7. While this isn’t a value stock, because those trade at 15x and under, for NVIDIA, this is a historically low P/E. Investors are buying the red-hot growth.
NVIDIA also recently announced another $150 billion for its share repurchase program.
It’s no surprise if you’ve seen other Market Edge Podcasts, but NVIDIA is Tracey’s top pick among the Mag 7 stocks.
Should NVIDIA, once again a Zacks #1 Rank (Strong Buy) stock as analysts raise earnings estimates, be on your short list?
3. Microsoft Corp. (MSFT - Free Report)
Microsoft is a sleeper. It’s a software company but is also building AI infrastructure. Earnings are expected to rise 9.3% this fiscal year, which doesn’t sound that great, but that’s coming on top of last year’s 31.6% gain.
Shares of Microsoft were left for dead earlier in the year but have rebounded 34.7% in the last three months. However, year-to-date, it’s up just 5.9%.
Many worried about Microsoft’s valuation in the last few years as it traded with a forward P/E above 30. But the recent share price action has brought down the valuation. Microsoft now trades with a forward P/E of just 26.
Microsoft was Ethan’s second top pick in the Mag 7.
Should the dot-com superstar Microsoft be on your short list during the AI Revolution?
What Else Do You Need to Know About the Mag 7 Right Now?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of MSFT, AMZN and GOOGL in her own personal portfolio.]