The Cheapest "Magnificent Seven" Stock Looks Like a Long-Term Buy Right Now

Group 1 - The "Magnificent Seven" refers to a group of leading tech companies driving the U.S. stock market, including Nvidia, Apple, and Microsoft [1] - The momentum in the artificial intelligence segment has led to some stocks becoming pricey, but one stock appears relatively cheap, presenting a potential buying opportunity [2] - High-growth companies may be undervalued when assessed using trailing earnings metrics; a better gauge is the one-year forward price-to-earnings estimate based on analysts' projections [4] Group 2 - Nvidia, despite being the largest company by market cap, is not the most expensive stock in the "Magnificent Seven" cohort, especially if it continues its expected growth [6] - Most stocks in this group are trading at premium valuations, clustered around 25 to 30 times next year's expected earnings, which are not historically cheap levels [8] - Meta Platforms is identified as the cheapest stock in the group on a forward price-to-earnings basis, although concerns about its AI infrastructure spending have led to significant sell-offs [7][8][9]