Jefferies ranks NVDA as top Magnificent Seven name and MSFT at the bottom
Jan. 17, 2025 11:30 AM ET
By: Jason Capul, SA News Editor
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Jefferies ranked Nvidia (NASDAQ: NVDA) as its top Magnificent Seven name, while Microsoft (NASDAQ: MSFT) found itself at the bottom of the heavyweight group.
“Each of the seven stocks have outperformed [the S&P 500] over the past five years… However, not all stocks have fared equally well,” Jefferies said.
In order to properly rank the seven giants, Jefferies used a quantitative model that measured several factors including better growth and revisions, improving sell-side sentiment, price momentum, lower valuations, high yield, high/rising ROIC, and R&D vs. capex.
See Jefferies' ranking of the Magnificent Seven below:
No. 1: Nvidia ( NVDA)
No. 2: Alphabet ( GOOG) ( GOOGL)
No. 3: Meta Platforms ( META)
No. 4: Apple ( AAPL)
No. 5: Amazon ( AMZN)
No. 6: Tesla ( TSLA)
No. 7: Microsoft ( MSFT)
Regarding its top pick Nvidia ( NVDA), the investment bank added: “[NVDA] scores the best on growth/revisions, sell side sentiment, valuations and high/rising ROIC while also ranking reasonably well on price momentum and R&D vs capex. It ranks average only on yield.”
As for its bottom pick Microsoft ( MSFT), it stated: “Overall, this stock [MSFT] has all below average characteristics except sell-side sentiment.”
See the megacap club's 2024 performance below:
Additionally, see how each stock has fared so far in 2025: NVDA +2.4%, GOOG +3.7%, META +4.7%, AAPL -7.7%, AMZN +2.3%, TSLA +6.8%, and MSFT +1.8%.
Magnificent Seven related ETFs: ( MAGS) ( MAGX) ( QQQU) and ( QQQD).
Seeking Alpha editor Anuron Mitra contributed to this story |
