Investment firm Jefferies put out its ranking for the top seven stocks in the technology sector, known as the Magnificent Seven. Nvidia (NVDA) took the top spot, while Microsoft (MSFT) ranked last. According to Jefferies, all seven stocks have outperformed the S&P 500 over the past five years.
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To determine the ranking, Jefferies used a quantitative model that evaluated several key factors. These factors included growth and revisions, sell-side sentiment, price momentum, valuations, yield, and research and development spending. By analyzing these factors, Jefferies was able to rank the Magnificent Seven from top to bottom.
Nvidia’s top ranking was due to its strong performance in several areas, which include growth, sell-side sentiment, and valuations. This comes despite its stellar performance in the past year, which saw its shares rise almost 140% – significantly more than the other Magnificent Seven stocks. Microsoft, on the other hand, ranked last due to its below-average characteristics, except for sell-side sentiment. It is also worth noting that MSFT shares significantly underperformed the group with a 9% gain. The full ranking is as follows:
Which Magnificent Seven Stocks Is the Best Buy?
Overall, when it comes to the Magnificent Seven stocks, analysts expect the most upside potential from Nvidia stock thanks to its price target of $176.86 per share, which implies gains of more than 28% from current levels. On the other hand, they expect the least from Tesla, as its price target of $329.63 per share implies a decline of more than 24%.
