The Mag 7 group has been dominating market conversations in recent times with a stellar performance that continues to captivate investors’ attention. In a current market landscape filled with twists and turns, the trio comprising Nvidia NVDA, Apple AAPL, and Amazon AMZN have emerged as the stars shining the brightest.
Nvidia
The darling of investors, Nvidia, has been under some pressure due to an AI trade slowdown. Despite this, the stock has soared by an impressive 130% this year, and its earnings forecast remains robust. Projections of $2.69 per share for the current year indicate a substantial 100% year-over-year surge in earnings, with a 90% uptick expected in sales. Nvidia’s sales growth has been phenomenal, primarily driven by the insatiable demand for chips essential for AI applications.
Apple
Apple underwent scrutiny for a sluggish start in 2024, but the stock has shown significant improvement lately, boasting a YTD increase of 14%. Concerns over China and AI competitiveness initially weighed on Apple’s performance, but a recent strong set of quarterly outcomes brought a wave of post-earnings optimism. Holding a Zacks Rank #2 (Buy), Apple’s earnings estimates have been on an upward trajectory across the board.
Amazon
Amid favorable quarterly results spotlighting a rebound in AWS, Amazon’s shares have been on an upward trajectory in 2024, supporting its Zacks Rank #2 (Buy) status. Amazon’s latest financial period showcased robust performance with an operating income of $15.3 billion, marking a 220% increase from the previous year. AWS demonstrated stellar results, with net sales hitting $25 billion, reflecting a 17% year-over-year growth and breaking a trend of recent negative surprises in this area. The company’s outlook for the current fiscal year remains promising, with a Zacks Consensus EPS estimate of $4.59 suggesting a solid 60% year-over-year earnings growth.
Key Takeaway
The trio of Nvidia, Apple, and Amazon, esteemed members of the Mag 7 group, continue to be the talk of the town for investors. While facing some challenges in recent times, these stocks boast resilient fundamentals and positive outlooks. Any recent downward pressure could be attributed to profit-taking after remarkable rallies, compounded by the prevailing strength in small-cap stocks affecting their performance.
References to Zacks Investment Research:
– Demand for clean hydrogen energy is projected to reach $500 billion by 2030, escalating 5 times by 2050. Zacks has identified 3 diversified industry titans poised to lead the charge in becoming hydrogen powerhouses.
– One company has outperformed the market over the past 25 years, with its stock soaring from +2,400% to +380%.
– Another entity has already secured capital commitments totaling $15 billion for low carbon hydrogen products up to 2027.
– The third pick attained 52-week highs in Q4 2023 and has consistently raised its dividend annually for over a decade.