Concerned that the mighty “Magnificent Seven” stocks may be losing their spark? Despite some showing growth rates below 10%, it seems there might still be untapped potential within this coveted group, suggesting that the best investment opportunities may lie in unexpected corners.
Insights into Analyst Projections for the Magnificent Seven
Exploring the consensus analyst price targets for each of the Magnificent Seven reveals intriguing perspectives on their potential upside, based on closing prices from the prior week.
| Stock | Price Target | Upside % |
|---|---|---|
| AAPL | $205.27 | 19% |
| AMZN | $197.95 | 13% |
| GOOG | $146.33 | 3% |
| MSFT | $415.00 | 0% |
| META | $494.53 | 2% |
| NVDA | $829.66 | (6%) |
| TSLA | $211.93 | 30% |
Source: MarketBeat. Upside based on closing prices from March 15, 2024.
Price targets offer a projection of a stock’s performance over the next 12 months. However, in the dynamic world of investing, rapid growth may lead to skewed projections, as exemplified by the case of Nvidia. Despite boasting impressive gains, its conservative target may not reflect its true potential due to its rapid ascent.
A standout like Tesla (NASDAQ: TSLA) appears attractive due to its recent decline. Amidst issues such as declining margins and market competition, analysts’ delayed adjustments could erroneously elevate its upside potential.
Unearthing the True Value in the Magnificent Seven
Despite seeming like a bargain, a deeper dive reveals that Tesla, when factoring in its earnings projections, emerges as the priciest option. The forward-looking price-to-earnings ratio unmasks the stark reality behind the market’s infatuation with Tesla’s stock, hinting at its inflated valuation. Surprisingly, Nvidia, famed for its AI prowess, stands as a middle-ground contender, balancing significant profits with projected growth.
Why Tesla Might Not Be the Golden Opportunity
While Tesla’s revival is plausible down the road, for now, it might just be the riskiest pick within the Magnificent Seven. Other candidates within this elite circle might promise more stability and growth in the long haul.
Caution is advised against solely relying on outdated analyst targets, especially during turbulent market phases where a declining stock, like Tesla, can falsely appear as an ‘upside gem’.
Instead, shrewd investors are encouraged to embrace a long-term perspective, considering stalwarts like Nvidia with its cutting-edge technology or Amazon for its continuous evolution in the e-commerce realm, heralding more promising investment avenues than Tesla at present.
Looking for the best investment prospects right now?
Listening to our insightful analyst team, steeped in over two decades of market perspectives through the Motley Fool Stock Advisor, has historically proven advantageous. Their recently unearthed top 10 stock choices for investors feature Tesla, yet there are possibly 9 hidden gems under the radar.
*Stock Advisor returns as of March 20, 2024
