Magnificent 7 tech stocks

Magnificent 7 tech’ stocks haven’t been this cheap since 2017

The Magnificent Seven tech stocks

These are the seven largest U.S. listed companies in the technology sector.

Apple, Microsoft, Amazon, Alphabet, Nvidia, Tesla and Meta Platforms

According to a report released Monday 2nd October 2023, these tech’ stocks have seen their valuation drop relative to the median stock in the S&P 500, making them more attractive for investors. The report says that the Magnificent 7 trade at 1.3 times their PEG ratio (price-to-earnings-to-long-term growth), versus 1.9 for the median S&P 500 stock. 

This is the cheapest valuation in over six years – time to buy yet?

The report also highlights some positive drivers for these stocks, such as their strong sales growth, their ability to beat expectations, and their resilience to rising interest rates.

However, some analysts also warn that the dominance of these stocks could pose a risk for the broader market if something bad happens to tech’.

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