The Magnificent Seven stocks are now trading at their cheapest valuation relative to the S&P 500 in more than a decade, according to Morgan Stanley.
The analysis looks at the price-to-earnings multiple premium for the Magnificent Seven relative to the other 493 companies in the S&P 500. The premium has held above 30% for most of the 2020s but is now closer to 10%.
All Magnificent Seven stocks have underperformed the S&P 500 in 2026 except for Alphabet, which has notched a 14.5% year-to-date gain versus the benchmark index’s 8.8% advance.
The companies that make up the Magnificent Seven are Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, Apple and Tesla.
Yahoo Finance
