Investment firm Jefferies has released a ranking of the top seven stocks in the technology sector, known as the “Magnificent Seven.” NVIDIA (NVDA) came out on top and Microsoft (MSFT) came in last. According to Jefferies, all seven stocks have outperformed the S&P 500 over the past five years.
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To determine the rankings, Jeffries used a quantitative model that evaluates several key factors. These factors include growth and corrections, seller sentiment, price momentum, valuation, yield, and R&D spending. By analyzing these factors, Jefferies was able to rank the Magnificent Seven from top to bottom.
Nvidia’s top ranking is due to strong performance in several areas, including growth, sell-side sentiment, and valuation. This is despite the company’s impressive performance over the past year, which has seen its stock price increase by about 140%, which is significantly higher than other Magnificent Seven stocks. Microsoft, on the other hand, ranked last due to below-average characteristics, excluding sell-side sentiment. It’s also worth noting that MSFT stock significantly underperformed the group, rising 9%. Here are the complete rankings:
Nvidia Alphabet (GOOGL) Meta Platform (META) Apple (AAPL) Amazon (AMZN) Tesla (TSLA) Microsoft
Which Magnificent Seven stocks are the best buys?
Overall, when it comes to Magnificent Seven stocks, analysts expect NVIDIA stock to have the most upside potential, as it has a price target of $176.86 per share. This represents an increase of more than 28% from current levels. On the other hand, they are the least excited about Tesla, as its price target of $329.63 per share implies a decline of more than 24%.
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