The "Magnificent Seven," consisting of Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA and Tesla, have significant weighting in the S&P 500. These stocks make up 29% of the index.
'Magnificent Seven' has market-topping performance
Year-to-date, the stocks have returned 45.1% to 239.9% through Nov. 14. That's much higher than the S&P 500's 18.7%.
The stocks have higher price-to-sales multiples than the S&P 500. NVIDIA has a P/S of nearly 38.