While the “Magnificent Seven” helps lead the market in 2024, it accounts for more than half of the S&P 500’s 23.3% earnings, according to Piper Sandler, some stock investors should Pay attention to 2025. “While the Magnificent 7 is the most successful company in the world, they are not Excellent every year.” “So far, only Meta has significantly led the S&P 500 S&P 500 in 2025, while 4 of the MAG 7 stocks are in the red YTD.” So far, Yuan Platform stocks have risen more than twenty two%. During the same period, the S&P 500 rose by more than 4%. “Many investors tied MAG 7 to growth trade, as these stocks have certainly played a significant role in the performance of the growth index in recent years,” Kantrowitz wrote. “Nevertheless, even throughout MAG 7, the growth index is the same.” And the growth factor also manages to become a leader in 2025. “With that in mind, Piper highlights the magnificent seven large-scale technology alternatives. The company screens out quality cyclical names, especially those with high cash flow returns, related to PMI, revenue momentum and free cash flow gains. These are some stocks that have emerged. Shares of chip maker Qualcomm have made meaningful gains over the past year, climbing nearly 14% over the past 12 months. So far, the stock has performed more than the S&P 500, at around 13%, more than three times the index. Some analysts are concerned that the company’s growth trajectory is moving forward, even with strong forecasts made in the quarter. For example, Morgan Stanley analyst Joseph Moore said after Qualcomm’s latest quarterly results that the rise of Chinese telecom and smartphone giant Huawei could serve as a headwind for Qualcomm. The company recently increased revenue by 22% in 2024 compared to the previous year. That said, more than 41 analysts covering it on Wall Street are bullish on the name in the coming months, according to LSEG, as 23 have strong buy or buy ratings. They can also see considerable gains here, as their consensus target is about $201, which means nearly 16% from Tuesday’s closing price. In software, Fortinet stock hit a new 52-week high at Tuesday’s meeting, earning nearly 67% over the past 12 months, almost three times the S&P 500 S&P 500 at the time. In addition, its growth at the beginning of the year by about 21% was more than five times the index’s return during this period. FTNT 1y Mountain FTNT, the company’s fourth-quarter results outperformed street estimates earlier this month, with management releasing a strong full-year revenue guide for 2025. However, the stock is rated as hold among analysts. Of the 42 analysts, 16 had strong buy or buy ratings, while 25 analysts took the hold rating as a neutral stance. In addition, Hewlett Packard Enterprise has also performed well over the past year with nearly 46%. It is worth noting that eight of the 13 analysts have strong buy or buy ratings, and their consensus target of about $24 reflects an upward potential of more than 11%.
Forget “The Magnificent 7” and buy these high-quality alternatives: Piper Sandler | Real Time Headlines
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