As you can see in the table below, “The Magnificent 7” mega-cap stocks have posted incredible 10-year returns. However, there have recently been some big changes in the market (e.g. interest rate expectations) and to these seven businesses in particular (e.g. maturation, dividends, AI and more). In this report, we provide an update to our January rankings of the Magnificent 7 stocks, with a special focus on Amazon (AMZN) (including its business, four big growth drivers, valuation and risks). We conclude with our strong opinion on investing in Amazon (and each of the Magnificent 7) for the remainder of this year (and beyond).
Top 20 S&P 500 Stocks: YTD and Last 10 Years
Major Auto Manufacturers: Mkt Cap, Margins, Valuations
Major Car Maker Comparisons: Just a quick “chart break” to share comparative data on the major auto makers in terms of market caps, margins, valuations and growth rates. There’s been a lot of talk about how disproportionately large Tesla’s market cap is to other car makers, but when you take into consideration Tesla’s strong margins and higher growth rate, the story becomes very different. Here is the chart.
Tesla: 20 Top Growth Stocks Ranked
Tesla shares are down more than 70%, and it’s going to get worse. For starters, the “woke mob” is ticked at CEO Elon Musk. Next, growth stocks in general are getting hammered as interest rates rise and there is no “fed put” in sight. In this report, we rank Tesla (based on fundamental metrics) versus 20 top growth stocks sourced from the top 10 holdings of two popular active growth ETFs, Future Fund (FFND) and Ark Innovation (ARKK), both have very large positions in Tesla. After digging deeper into the details on Tesla (including its tangled business history with the woke mob, future growth potential, profitability, valuation and risks), we conclude with our strong opinion about investing in Tesla and growth stocks in general.