With the technology space encountering a sizable correction, it’s time to consider Magnificent 7 stocks to buy now. Credited to Bank of America analyst Michael Hartnett for using the borrowed term from an old film, this list comprises the most popular and compelling businesses available.
Fundamentally, the advantage of the Magnificent 7 stocks to buy now centers on high visibility. Because pretty much every analyst has covered all the angles possible, you can generally trust their bullish assessments. Further, because of the enhanced visibility, institutional investors are likelier to bet on these companies.
So, with the tech sector struggling for traction, there could be some discounts on the table. With that, here are Magnificent 7 stocks to buy now.
Alphabet (GOOGL)
Given the dramatic role of artificial intelligence in the tech sector’s prior boost, Alphabet (NASDAQ:GOOGL) isn’t the most exciting enterprise among the Magnificent 7 stocks to buy now. However, it’s arguably the most sensible. With a history of consistent profitability and ongoing double-digit revenue growth, GOOGL represents a solid bet.
Plus, the underlying utility makes Alphabet somewhat of a secular play instead of a cyclical one. For example, the company’s Google ecosystem is practically indispensable for everyday professionals. It’s not just about Gmail but also the search engine and the cloud functionality. Alphabet may not own the internet but it certainly makes it more useful.
You also can’t argue with the results. Its average positive earnings surprise comes in at 6.7%. It’s not blowing out anyone’s doors but it gets the job done. For fiscal 2024, analysts see earnings per share of $6.82 on sales of $342.3 billion. That a very good improvement over last year’s results of $5.80 EPS on revenue of $307.39 billion.
Microsoft (MSFT)
If I had to go with any one idea among the Magnificent 7 stocks to buy now, it would be Microsoft (NASDAQ:MSFT). Presently, Microsoft captured the spotlight thanks to its significant investments in generative AI. Obviously, those investments are paying off dividends (in a figurative sense). MSFT stock is up 11% on a year-to-date basis.
Even better, shares gained almost 43% of equity value over the past 52 weeks. It has taken a minor slip, losing more than 3% in the trailing five sessions. This may be a discount, though, as the company enjoys myriad relevancies. Beyond AI, its core offering of providing business-centric software – Word, Excel, etc. – could be crucial. For instance, the rise of the gig economy could see Microsoft’s software unit spike up over the long run.
In fiscal 2023, the company posted an average positive earnings surprise of 8.4%. For the current fiscal year, experts anticipate EPS to land at $11.65 on revenue of $244.22 billion. That’s a huge lift from last year’s results of $9.81 EPS on sales of $211.91 billion.
Meta Platforms (META)
Once known just as a social media network, the company formerly called Facebook transitioned to become Meta Platforms (NASDAQ:META). The company now seeks to become the leader in the next wave of digital interactivity, known as the metaverse. To accomplish this directive, it has invested in product lines such as virtual reality hardware.
I’m not entirely sure where the metaverse will go. However, Precedence Research claims that the global metaverse market reached a valuation of $92.46 billion last year. By 2033, the sector could be worth nearly $2.37 trillion. If so, this expansion would represent a compound annual growth rate of 38.31% from 2024. That’s simply massive.
For the current fiscal year, analysts are looking for EPS to land at $20.04 on revenue of $158.43 billion. Despite already growing so much, experts see even more upside ahead. Last year, the company posted EPS of $14.87 on revenue of $134.9 billion.
Finally, analysts rate META a consensus strong buy with a $547.45 price target. It’s one of the Magnificent 7 stocks to buy now if you believe in the company’s direction.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
