Should You Buy the Only "Magnificent Seven" Stock That Is Cheaper Than the S&P 500 According to This Key Metric?
The "Magnificent Seven" companies -- Microsoft, Apple, Nvidia, (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon, Meta Platforms (NASDAQ: META), and Tesla -- are known for their growth prospects and rewarding long-term shareholders with epic gains, but not so much for being value stocks.
However, earnings growth and a recent sell-off in Alphabet stock have pushed its forward price-to-earnings ratio below that of the S 500. The forward P/E ratio is based on projections for the next 12 months rather than the trailing 12 months of earnings.
Source Fool.com