In This Article:
Over the past two years, the Magnificent Seven — comprised of prominent tech stocks Meta Platforms (META), Microsoft (MSFT), Alphabet (GOOGL, GOOG), Amazon (AMZN), Apple (AAPL), Nvidia (NVDA), Tesla (TSLA) — has time-and-time again outperformed the broader S&P 500 (^GSPC), rising over 120% in that time.
However, the question of whether this outperformance will continue into 2025 looms. Gabelli Funds portfolio manager John Belton believes these companies are well-positioned due to their strong fundamentals, expanding margins, and effective capital allocation. Bolton manages the Gabelli Global Growth Fund (GICPX).
"I think the Mag Seven has really, really strong fundamentals. I'd start there. As long as those fundamentals continue, I don't see valuations here looking particularly stretched," Belton tells the Catalysts team. "So, I think we take them case by case. Can talk about any of them, but I do think right now these companies are showing really solid top-line fundamentals."
Related Videos
Regarding Nvidia (NVDA), Belton feels the chipmaker is still undervalued despite recent attention to DeepSeek's latest AI model. He also points out that while earnings expectations for the broader market are accelerating, the Mag Seven will continue "overdelivering."
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Josh Lynch