The Magnificent 7 stocks, comprised of the largest technology companies by market weighting, continue to outperform. Even Apple (NASDAQ:AAPL), the laggard of the group, has seen its stock rebound in recent weeks. Much of the gains in the stock market over the past 18 months are due entirely to this group of mega-cap tech stocks.
Despite their outsized growth and influence over the market, analysts, for the most part, remain bullish on mega-cap tech. The seven companies that form the Magnificent 7 group are likely to continue outperforming other securities. That’s because their superior business models, strong earnings and ample cash reserves make them worth investors’ capital.
Here are three strong buy Magnificent 7 stocks you should consider for June 2024.
Nvidia (NVDA)
What more can be said about Nvidia (NASDAQ:NVDA)? It’s the stock of the moment, leading the entire market higher. The company just surpassed Microsoft (NASDAQ:MSFT) to become the world’s most valuable publicly traded company after executing a 10-for-1 stock split. So far this year, NVDA stock has gained 165%. Over the last 12 months, the share price has tripled.
Despite the gains and growth, Wall Street remains bullish on Nvidia and the outlook for its stock. A total of 41 professional analysts rate NVDA stock a Strong Buy. No analysts are betting against the company with a Sell rating. Analysts continue to see Nvidia as the top producer of microchips and semiconductors and one of the best ways to invest in artificial intelligence (AI).
Amazon (AMZN)
All 42 analysts offering a price target on Amazon’s (NASDAQ:AMZN) stock rate it a Buy. The overwhelming vote of confidence gives AMZN stock a consensus Strong Buy rating. Analysts also see a lot more runway ahead for Amazon stock, with a median price target on the shares 19% higher than current levels. The bullish forecast comes with Amazon’s share price up 48% over the past 12 months, including a 23% rise this year.
Analysts praise Amazon on many fronts. They like the cost controls and job cuts the company implemented coming out of the pandemic, applaud the continued growth in the cloud computing unit and like the way Amazon is diversifying its business, growing in new areas such as streaming. These measures combined have enabled Amazon to report strong quarterly financial results, which have lifted its share price.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) also rates a Strong Buy among analysts following big gains over the past year. In the last 12 months, META stock has increased 77%, making it a top-performing tech stock. Yet analysts’ median price target on the shares is still 5% higher than current levels. There are rumors that Meta Platforms may split its stock later this year as the share price crests above $500.
Analysts find a lot to like with META stock. The company earlier this year began paying a quarterly dividend for the first time. The distribution is worth 50 cents a share, giving the stock a yield of 0.40%. The valuation of Meta Platforms’ stock also remains attractive. The shares currently trade at 28 times forward earnings, one of the lowest valuations among the Magnificent 7 group. And Meta Platforms is expected to continue benefitting from a resurgence in online advertising across its suite of social media platforms.
On the date of publication, Joel Baglole held long positions in NVDA and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.