Of the Magnificent 7 which are boasting the strongest growth potential?
10/23/2024 02:38am
The Magnificent 7 stocks are expected to exhibit strong growth potential, but the growth rates vary across the group. Here's a detailed analysis of the growth potential for each stock:
1. **Vertex Pharmaceuticals (VRTX)**: Vertex is anticipated to see a significant earnings per share (EPS) surge of 5,642% next year, reaching $18.58 per share. Despite a projected top-line growth slowdown from 9% in 2024 to 8% in 2025, Vertex's stock shows strong ratings and has recently reached all-time highs.
2. **TG Therapeutics (TGTX)**: TG Therapeutics is expected to experience a remarkable EPS growth of 1,316% in 2025, rebounding from a decline in the current year. The company has turned profitable and is projected to see sales growth of 41% in 2024 and 49% in 2025.
3. **Semitech (SMTC)**: Semtech's EPS is expected to boom by 142% next year, following a period of decline. The company's stock has shown strong ratings and has performed well this year.
4. **Amazon (AMZN)**: Amazon is seen as having the largest expected gain of any Magnificent 7 stock, with shares projected to rise more than 12% in the next 12 months. The company's earnings are expected to grow significantly, with a projected EPS of $4.55 for the year, a nearly 57% increase from the previous year.
5. **Alphabet (GOOGL)**: Alphabet's stock is expected to rise by 5% in the next year. The company's earnings are expected to grow steadily, with a projected EPS of $6.99, a 13% increase from the previous year.
6. **Microsoft (MSFT)**: Microsoft's stock is projected to increase by nearly 9% in the next year. The company's earnings are expected to grow steadily, with a projected EPS of $3.25, a 7% increase from the previous year.
7. **Nvidia (NVDA)**: Nvidia's stock has seen significant gains this year, but its growth potential is still strong. The company's EPS is expected to grow by 173% next year, reaching $10.23 per share.
In conclusion, Vertex Pharmaceuticals (VRTX) and TG Therapeutics (TGTX) are currently boasting the strongest growth potential among the Magnificent 7 stocks, with projected EPS growth rates of 5,642% and 1,316%, respectively. However, it's important to note that all Magnificent 7 stocks are expected to exhibit strong growth potential, and investors may consider a diversified approach to capitalize on the growth prospects of this group.