The “Magnificent Seven” usually refers to the 1960s Western film, but today’s stock market investors recognize the term as a set of seven big tech stocks, namely Apple AAPL, Microsoft msft, Alphabet Google, Amazon amzn, NVIDIA NVDA, meta platform meta and Tesla TSLA.
Thank you for reading this post, don't forget to subscribe!Third quarter earnings season is underway, investors will keep their eyes on this “the magnificent Seven” Earning. Whereas Tesla has already posted Weak Q3 earnings (missing estimates on both fronts), others not yet reported (Read: Tesla posts weak Q3 earnings: ETFs in focus).
Investors should note that according to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the likelihood of an earnings beat. You can discover the best stocks to buy or sell before they report earnings with our ESP filters.
earnings whisper
Microsoft The report is expected on October 24. The stock has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). Over the past 90 days, Microsoft’s earnings for the September quarter rose 8 cents to $2.65 per share.
Alphabet The report is expected on October 24. The stock has an Earnings ESP of +0.89% and a Zacks Rank #3. Over the past 90 days, Alphabet’s earnings for the September quarter rose 11 cents to $1.45 per share.
meta The report is expected on October 25. The stock has an Earnings ESP of +3.98% and a Zacks Rank #3. Over the past 90 days, Meta’s earnings for the September quarter rose from $2.99 to $3.57 per share.
Amazon The report is expected on October 26. The stock has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). Over the past 90 days, Amazon’s earnings for the September quarter have risen from 39 cents to 58 cents per share.
Apple The report is expected on November 2. The stock has an Earnings ESP of 0.00% and a Zacks Rank #3. Over the past 90 days, Apple’s earnings for the September quarter have risen 2 cents to $1.39 per share.
NVIDIA The report is expected on November 15. The stock has an Earnings ESP of +6.93% and a Zacks Rank #1 (Strong Buy). Over the past 90 days, Nvidia’s earnings for the October quarter increased from $2.22 to $3.34 per share.
Inside evaluation of the Magnificent Seven
While the ‘Magnificent Seven’ hold industry leadership positions in areas such as artificial intelligence, cloud services, social networking, search engines, metaverse, premium smartphones and electric vehicles (which has enabled them to capture a huge global market share). Valuation is equally important in influencing their stock performance in the near future.
In this regard, the P/E of Meta, Alphabet and Microsoft is lower than the P/E of the related industry computer software-services market, the P/E of Apple is almost in line with the P/E of the related industry computer-office equipment market. However, Amazon, Tesla and Nvidia are expensive.
ETF in focus
As some stocks appear to be overvalued and some have seen earnings miss estimates by small margins, investors may turn to an ETF approach because the basket form minimizes company-specific risks.
Apple-Heavy ETF: Technology Select Sector SPDR Fund XLK, Fidelity MSCI Information Technology Index ETF FTEC
Microsoft-Heavy ETF: XLK, FTEC
Alphabet-heavy ETFs: Fidelity MSCI Communication Services Index ETF FCOM, Communication Services Select Sector SPDR Fund XLC
Meta-Heavy ETFs: XLC, FCOM
nvidia-heavy etf: VanEck Semiconductor ETF SMH, AXS Esoterica NextG Economy ETF Vuggie
Tesla-Heavy ETF: Meet Kevin Pricing Power ETF PP, Consumer Discretionary Select Sector SPDR Fund XLY
Amazon-Heavy ETF: ProShares Online Retail ETF ONLN, XLY
Want the latest recommendations from Zacks Investment Research? Today, you can download the 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Nvidia Corporation (NVDA): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Report
VanEck Semiconductor ETF (SMH): ETF Research Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Report
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Report
Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Report
Meet Kevin Pricing Power ETF (PP): ETF Research Report
Communication Services Select Sector SPDR ETF (XLC): ETF Research Report
ProShares Online Retail ETF (ONLN): ETF Research Report
AXS Esoterica NextG Economy ETF (WUGI): ETF Research Report
Meta Platform, Inc. (Meta): Free Stock Analysis Report
Click here to read this article on Zacks.com.
Zacks Investment Research
Source: finance.yahoo.com
