The 3 magnificent seven stocks that outperform the market

As the second quarter of the year is now underway, we are preparing for earnings season, when major market players will unveil their first quarter results. This year presents a clear change compared to the previous one. In 2023, the market has been driven by what has been dubbed the “magnificent seven,” a select group of global tech giants that dominate the scene. Their dominance has been fueled by their significant market share and advances in artificial intelligence, cloud computing, online gaming, and cutting-edge hardware and software. These seven stocks outperformed and infused the market with a substantial dose of confidence.

However, as we reach the four-month mark of 2024 the situation has changed. The disparity in performance between the seven members is astonishing. Tesla, one of the members, is down nearly 40% and is the worst performer in the S&P 500 Index. Apple is in correction territory and is rapidly approaching bear market territory, with its shares down 13, 5%. And Nvidia, despite growing 70% year over year, is down 13% from its 52-week high.

Despite the poor performances of several members of the Magnificent Seven, three of them have stood out for their remarkable resilience in recent weeks. These companies have managed to maintain their positions in the market, demonstrating their ability to weather market storms and their potential for upward movements if the market stabilizes in the short term.

3 magnificent seven members demonstrating resilience

Alphabet Inc.

Alphabet shares NASDAQ:GOOGL have shown notable relative strength and resilience in recent weeks, with its shares down from its 52-week high by only about 2%. The broader tech sector, however, has fallen nearly 6% from its 52-week high.

The search engine giant has a Moderate Buy rating based on thirty-three analyst ratings and is among the most up-to-date and followed names. While the overall market is trading below the major simple moving averages (SMAs), GOOGL has maintained its position near the highs and is consolidating above the rising SMAs, making it a potential breakout candidate if the price rises. market. The company is expected to report earnings on April 25 after the market close, and anticipation for its performance is high.

Amazon.com

Similar to GOOGL, Amazon stock NASDAQ:AMZN have recently demonstrated resilience and strength amid a broader market sell-off. While the market and tech sector have tumbled in recent weeks, AMZN has held its ground firmly, up nearly 18% year-over-year and up nearly 2% from the previous month. Even though the stock has retreated slightly from its 52-week high, its uptrend remains intact as it aims to make a higher low above its rising 50-day SMA.

The stock is an analyst favorite, holding a Buy rating based on forty-five ratings. Surprisingly, the stock’s consensus price target calls for a further upside of 13.16%. Like GOOGL, if AMZN continues to show relative strength relative to its sector and the overall market, it could continue to outperform and even reach new heights should the market rally and capture a bid. The web services and online retail giant will report its first-quarter earnings on April 30.

Meta Platform Inc.

Meta’s turnaround and recovery have been nothing short of remarkable. Meta platforms NASDAQ: META is up more than 140% from its 52-week low and, adding to 2023’s impressive gains, is up another 42% in 2024. Since its low and turning point in late 2022, the stock is up nearly 400%.

Even though META has been one of the best performing stocks in the S&P 500 this year, significantly outperforming the market and sector, analysts still expect further upside for the stock based on the consensus price target of $519.53 . META is one of the most up-to-date stocks, with a Moderate Buy rating based on forty-three analyst ratings. After the market closes, the company will release its earnings next week, on April 24.

Before you consider Meta Platform, you’ll want to hear it out.

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While Meta Platforms currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

View the five stocks here