University of Kwazulu-Natal

Ranking The Best Magnificent Seven Stocks To Buy For 2026 Here S My

Bonisiwe Shabane
-
ranking the best magnificent seven stocks to buy for 2026 here s my

These megacap companies have rewarded investors with epic long-term gains, but one -- Tesla -- may now be overextended. Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla (TSLA 0.40%) form an elite group of companies known as the "Magnificent Seven" due to their industry leadership and market influence. As many of these companies continue to deliver market-beating returns, the Magnificent Seven now comprise a remarkable 35% of the value of the S&P 500. In a series of articles, I'll be ranking each of these stocks and discussing why some are still chock-full of untapped potential, while others should be avoided by investors. Here's why Tesla is my least favorite of the bunch to buy in 2026. These megacap companies have rewarded investors with epic long-term gains, but one — Tesla — may now be overextended.

Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla (TSLA 1.10%) form an elite group of companies known as the “Magnificent Seven” due to their industry leadership and market influence. As many of these companies continue to deliver market-beating returns, the Magnificent Seven now comprise a remarkable 35% of the value of the S&P 500. In a series of articles, I’ll be ranking each of these stocks and discussing why some are still chock-full of untapped potential, while others should be avoided by investors. Here’s why Tesla is my least favorite of the bunch to buy in 2026. With a wide variation in valuation multiples and growth prospects, the Magnificent 7 group of mega-cap tech stocks is one of the most intriguing parts of the equity market to look at. By all accounts, these seven companies drive a significant percentage of the entire returns of most indices.

As such, they deserve the microscope investors place on these names. And with many passive and active investors alike holding significant exposure to these companies if they hold nearly any index exchange traded fund (ETF), balancing out this overweight exposure can be difficult. For those looking to create their own unique diversified portfolio of stocks (via stock-picking, a strategy I’d argue should likely come back in vogue thanks to the over-representation of these stocks in the broader... It’s harder than it looks. That said, here are my three top picks of the group, and why I think they’re poised to outperform over the long-term. With Warren Buffett recently adding Alphabet (NASDAQ:GOOG) to his equity portfolio within Berkshire Hathaway (NYSE:BRK-B), investors are clearly eyeing this stock much more closely.

That certainly makes sense to me. Tesla lacks one key quality that the other “Magnificent Seven” companies all possess. Its Robotaxi business is finally beginning to roll out in a few markets, but its autonomous Cybercab is not in production. Tesla’s valuation is astronomically high. Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla (NASDAQ: TSLA) form an elite group of companies known as the "Magnificent Seven" due to their industry leadership and market influence. As many of these companies continue to deliver market-beating returns, the Magnificent Seven now comprise a remarkable 35% of the value of the S&P 500.

Amazon is one way to invest in cloud computing and AI infrastructure, but the business is far from perfect. Nvidia (NVDA +2.59%), Apple (AAPL +0.36%), Alphabet (GOOG +0.55%) (GOOGL +0.61%), Microsoft (MSFT +0.27%), Amazon (AMZN +0.43%), Meta Platforms (META 0.02%), and Tesla (TSLA 0.39%) are part of a group of leading technology-focused growth... But at the time of this writing, only two of them are outperforming the S&P 500 (^GSPC +0.28%) so far in 2025 -- Nvidia and Alphabet. This is part three of a seven-article series in which I rank the best Magnificent Seven stocks to buy for 2026 (in reverse order). Tesla came in last place, followed by Apple in the sixth spot -- as both stocks are not worth buying right now. Amazon marks a turning point.

Although it's my fifth pick, I would categorize Amazon as a decent, but not a high-conviction buy for 2026. Here's why. Amazon soared after its latest earnings report, as its cloud computing services segment -- Amazon Web Services (AWS) -- delivered impeccable results. This was a sigh of relief, as AWS had been growing slower than peers like Microsoft Azure and Google Cloud. Nvidia's latest earnings show that the company's growth story is intact. The pie is big enough for Nvidia to grow earnings at a breakneck pace even as competitors like Broadcom and AMD land major cloud deals.

Welcome to part five of a seven-article series in which I rank the best "Magnificent Seven" stocks to buy for 2026 (in reverse order). Tesla came in last, followed by Apple as the sixth pick, Amazon at No. 5, Alphabet in the fourth spot, and now Nvidia (NASDAQ: NVDA) winning the bronze. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

People Also Search

These Megacap Companies Have Rewarded Investors With Epic Long-term Gains,

These megacap companies have rewarded investors with epic long-term gains, but one -- Tesla -- may now be overextended. Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla (TSLA 0.40%) form an elite group of companies known as the "Magnificent Seven" due to their industry leadership and market influence. As many of these companies continue to deliver market-beating returns, the M...

Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, And Tesla (TSLA

Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla (TSLA 1.10%) form an elite group of companies known as the “Magnificent Seven” due to their industry leadership and market influence. As many of these companies continue to deliver market-beating returns, the Magnificent Seven now comprise a remarkable 35% of the value of the S&P 500. In a series of articles, I’ll be ranking eac...

As Such, They Deserve The Microscope Investors Place On These

As such, they deserve the microscope investors place on these names. And with many passive and active investors alike holding significant exposure to these companies if they hold nearly any index exchange traded fund (ETF), balancing out this overweight exposure can be difficult. For those looking to create their own unique diversified portfolio of stocks (via stock-picking, a strategy I’d argue s...

That Certainly Makes Sense To Me. Tesla Lacks One Key

That certainly makes sense to me. Tesla lacks one key quality that the other “Magnificent Seven” companies all possess. Its Robotaxi business is finally beginning to roll out in a few markets, but its autonomous Cybercab is not in production. Tesla’s valuation is astronomically high. Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla (NASDAQ: TSLA) form an elite group of compani...

Amazon Is One Way To Invest In Cloud Computing And

Amazon is one way to invest in cloud computing and AI infrastructure, but the business is far from perfect. Nvidia (NVDA +2.59%), Apple (AAPL +0.36%), Alphabet (GOOG +0.55%) (GOOGL +0.61%), Microsoft (MSFT +0.27%), Amazon (AMZN +0.43%), Meta Platforms (META 0.02%), and Tesla (TSLA 0.39%) are part of a group of leading technology-focused growth... But at the time of this writing, only two of them a...