Analyzing the Cheapest Mag 7 Stocks Amid Market Correction

In the latest analysis, the Magnificent 7 stocks have emerged as potential investment opportunities in light of recent market corrections. The focus has been on value metrics, particularly price-to-earnings ratios.

Date: 18-03-2025

AI Rating: 6

The report highlights the Magnificent 7 stocks as potential buys following a 10% sell-off in the S&P 500. This correction opens buying opportunities, especially among stocks with attractive valuation metrics like price-to-earnings (P/E), price-to-sales (P/S), and PEG ratios.

Earnings Per Share (EPS): While EPS is not directly mentioned, the P/E ratios suggest underlying performance, especially with companies like NVIDIA expected to grow earnings significantly this fiscal year.

Revenue Growth: Revenue growth is indirectly addressed through the PEG ratio. NVIDIA stands out with projected earnings growth of 46.8%, indicating strong potential revenue increases.

Profit Margins: Profit margins are not specifically discussed in the report, meaning this area requires further scrutiny before investment decisions.

Free Cash Flow (FCF): FCF data is not provided, making it difficult for investors to gauge cash management and sustainability of operations.

Return on Equity (ROE): ROE is not mentioned, which limits the understanding of how well companies are utilizing equity to generate earnings.

In terms of company specifics:

Tesla, Inc. (TSLA): P/E ratio has decreased to 77 after a 38.7% year-to-date drop, signaling potential overvaluation.
Amazon.com, Inc. (AMZN): With a P/E of 31.1, it is considered low historically, particularly its attractive P/S ratio of 3.2.
NVIDIA Corp. (NVDA): P/E ratio of 24.8, with a PEG ratio of 0.97, hints at the prospect of both value and growth.
Meta Platforms, Inc. (META): Forward P/E of 22.7 and PEG of 1.2 indicate a buying opportunity.
Alphabet Inc. (GOOGL): Cheapest stock of the Mag 7 with a P/E of 18.4, suggesting strong value.

Stocks: TSLA AMZN NVDA META GOOGL