The best “top seven” stocks to buy in March


The “Magnificent Seven” group of stocks has dominated the market for several years. These emerging tech companies have emerged as market leaders over the past decade and become some of the world’s largest companies. In fact, Magnificent’s seven stocks are all among the 10 largest companies in the world. It consists of:

  1. Nvidia (NASDAQ: NVDA )

  2. Appl (NASDAQ: AAPL )

  3. the alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL )

  4. Microsoft (NASDAQ: MSFT )

  5. Amazon (NASDAQ: AMZN )

  6. Meta platforms (NASDAQ: META )

  7. Tesla (NASDAQ: TSLA )

But past performance does not always indicate future performance. These stocks are long-term winners, but which one has the best chance of success going forward? More importantly, what are the buying opportunities in March? Let’s take a look.

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A group of investors look at a stock chart.
Image source: Getty Images.

To me, Tesla is a tough stock to understand. The company is doing a lot of interesting things, and the future looks bright if some of the actions work, but the current results are not exciting. I think the best times to buy Tesla stock are when it is trading well above its all-time highs. While it’s down about 18% from that level, it’s similar to the rest of the stocks in this group, so I don’t think now is a good time to pick up the shares.

Apple is a company I don’t trust. It has failed to launch meaningful artificial intelligence (AI) products, and most of its revenue is tied to past efforts. It is currently reporting a rebound in growth, but that is because it has been relatively weak compared to the previous few years. Apple needs to post a strong year and launch some exciting new products for me to be interested in it again. Until then, I’m going to stock up.

That leaves Nvidia, Alphabet, Microsoft, Amazon, and Meta Platforms as the biggest buys in March, and I think a great case can be made for each.

All five of these stocks posted strong results and did exactly what they told investors they would do. As for Nvidia, Microsoft, and Meta, they may be performing just fine as businesses, but their stocks have made some headwinds.

NVDA PE Ratio (Forward) Chart
Data by YCharts.

Each of these stocks was trading for very high returns; Now they trade for almost the same price tag as S&P 500 (SNPINDEX: ^GSPC). The S&P 500’s forward earnings ratio is 21.9, yet all three stocks are growing much faster than the 10% average that the market typically grows.

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