3 Cheap "Magnificent Seven" Stocks to Buy Hand Over Fist

Core Viewpoint - The "Magnificent Seven" stocks, including Nvidia, Alphabet, Apple, Microsoft, Amazon, Meta Platforms, and Tesla, are approaching attractive valuations compared to their historical prices, with some stocks potentially being undervalued [1][2]. Valuation Analysis - All stocks in the "Magnificent Seven" trade at a premium to the market, but using forward earnings for valuation is more appropriate due to the rapid growth driven by the AI boom [4]. - The valuations of these stocks have converged to a typical range, with Tesla excluded due to its high forward earnings multiple of nearly 200 times [5]. - The focus is on stocks trading between 22 to 24 times forward earnings, specifically Nvidia, Microsoft, and Meta Platforms, which are considered good bargains [7]. Market Comparison - The S&P 500 trades at approximately 21.8 times forward earnings, indicating that the "Magnificent Seven" stocks are valued similarly to the market average despite their superior growth potential [8]. Individual Stock Insights - Nvidia: Currently trading at a low price, with a projected revenue growth of 52% for FY 2027, making it a strong buy opportunity [9]. - Microsoft: Experienced a decline post-earnings announcement, despite strong performance and 39% year-over-year growth in its Azure cloud platform, presenting a buying opportunity [11]. - Meta Platforms: Trading at 22.2 times forward earnings, it is the cheapest among the group, with expected revenue growth of 25% this year, indicating it is undervalued compared to its growth rate [13].