Finding The Next Magnificent 7 Stocks
7 companies who could form the next Mag 7
We all know about the domination of the Magnificent 7 stocks Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta and Tesla. Their performance over the years has been tremendous. They’ve done so well and become so powerful that you wonder if any companies will overtake them.
But the top companies tend to change over the years. Some of the current Magnificent 7 stocks will likely still be among the largest as they are years from now. But many will fall off.
Remember the dominating conglomerate that General Electric was in the early 2000s? It was the biggest company and nobody was ever going to surpass them. Well they did. GE is now the 59th largest company by market cap.
To illustrate just how the top companies do change over time, here are the Top 10 S&P 500 companies by decade. Many companies come and go. Over 34 years no company has been in the Top 10 every decade.
So what companies have the potential to be among the next wave of Magnificent 7 stocks? This is what I looked for as I put my list together.
Companies in the roughly $100-$300 billion market cap range. Do they have the TAM to be an over $1 Trillion company? Is there brand power? Can their growth and margins continue or even improve? What is their competitive outlook? Are they able to expand from their current core product offering for even more growth?
Here are the 7 stocks that I think could be the next Magnificent 7.
Uber
Uber uses its technology platform to provide transportation from point A to point B. It’s the undisputed king of ride-sharing both in the U.S. and abroad (108 countries to be exact). It accounts for a 73% market share in the U.S. It’s network has now brought growth to delivery through Uber Eats and Uber Freight.
When you think of transportation and moving items, Uber is the name that comes to mind.
It’s now profitable and there is the possibility that due to its platform, that it could eventually create the first super app. Think of one app that consolidates multiples services into one frontend single app. Uber has that potential and it’s just implementing an advertising business. A giant flywheel in the making.
How it leverages AI, advances with autonomous driving and expansion beyond rides and delivery will ultimately determine if Uber becomes an eventual Mag 7 stock or not.
1-Year Sales Growth: 18%
3-Year Sales Growth: 36%
P/E: 16.01
Forward P/E: 27.32
Price: $72.99
YTD Return: 21%
5-Year Return: 187%
