Ranking the Best "Magnificent Seven" Stocks to Buy for 2026. Here's My No. 6 Pick.

Core Viewpoint - The "Magnificent Seven" stocks, including Apple, have outperformed the S&P 500 over the last three years, but future performance is uncertain [1] Group 1: Apple’s Performance - Apple has shown signs of improvement, recovering from a 20% decline year-to-date just five months ago [4] - Revenue and earnings growth are improving, with an operating margin at its highest level in a decade at 32% [5] - Product sales increased by 4.1% and services grew by 13.5% for the 12 months ended September 27, 2025 [5] Group 2: Revenue Composition - Services, which are higher-margin, accounted for 26.2% of total sales in fiscal 2025, surpassing the combined sales of Mac, iPad, wearables, home, and accessories at 23.4% [6] - Services are now the second-largest revenue driver behind the iPhone [6] Group 3: Stock Buybacks and Valuation - Apple accelerated earnings growth through stock buybacks, spending $90.7 billion on repurchases in fiscal 2025 [7] - The company’s valuation has shifted from reasonably priced to potentially overvalued due to its low to moderate growth [8][9] Group 4: Future Potential - Apple is viewed as a reliable, high-margin company with moderate growth potential, especially in monetizing AI through its devices [10] - Easing trade tensions could enhance profits, particularly in China, which is its second-largest market [10]