Finance

Beyond the Hype: Magnificent Seven vs. Today’s TOP by PredictStock

PredictStock

Today, investors often gravitate toward big, headline-grabbing names: Apple, Tesla, Nvidia… These market giants, forming the S&P 500’s «Magnificent Seven», enjoy immense market trust. But is the future of returns truly confined to these leaders alone?

Our «Today’s TOP» stocks not only offer higher returns, but also greater diversification and a more accessible entry point.

Let’s compare returns from November 13, 2024 to December 13, 2024:

The «Magnificent Seven» (S&P 500)

  • Apple (AAPL): +10.22%
  • Tesla (TSLA): +32.09%
  • Nvidia (NVDA): -8.22%
  • Meta (META): +6.96%
  • Amazon (AMZN): +6.24%
  • Alphabet (GOOG): +6.12%
  • Microsoft (MSFT): +5.19%

Total return: +9.70% 📈

The first 7 stocks from PredictStock’s «Today’s TOP»

  • ATAT: +1.35%
  • QFIN: +27.96%
  • UAL: +5.94%
  • TSM: +7.68%
  • KGC: +5.17%
  • UTI: +26.76%
  • KINS: +33.95%

Total return: +10.26% 🚀

Our 7 picks delivered a total return of +10.26%, outperforming the Magnificent Seven (+9.70%). Moreover, the high returns are distributed among several stocks, rather than concentrated in just one or two wildly popular names.

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Still not convinced? Here are three more arguments:

1. Diversification beyond hype sectors

The «Magnificent Seven» mainly consists of large tech companies, increasing your exposure to a single sector and its inherent risks. Our 7 stocks span various industries: Insurance (KINS), Gold Mining (KGC), Education (UTI), Airlines (UAL), Alternative Energy (ATAT), Finance (QFIN), and Semiconductors (TSM). This mix reduces vulnerability to downturns in any one area and makes the portfolio more resilient.

2. Uncovering Hidden Gems

The broader public often overlooks stocks like KINS (+33.95%) or UTI (+26.76%). Though not household names, these hidden gems possess significant growth potential. This means more attractive entry points today and the chance to capitalize on future undervaluation.

3. Accessible Entry Point and Flexibility

The high share prices of the «Magnificent Seven» limit diversification options for smaller investments. Our portfolio allows you to build a set of 7 different companies for around $1,000, reducing risk and expanding your opportunities for success.

Comparing $1,000 Portfolios: «Magnificent Seven» vs. «Today’s TOP»

💼 «Magnificent Seven» for $1,000

  • MSFT: 1 share at $447.27
  • AAPL: 1 share at $248.13
  • GOOGL: 1 share at $189.82

Remaining cash: ~$114.78 (not enough to buy another share)

Result: You own just three tech stocks — minimal diversification and high dependence on a single segment.

💼 Our «Today’s TOP» Portfolio for $1,000

  • KINS (Insurance): 6 shares at $15.96 = $95.76
  • KGC (Gold): 10 shares at $9.77 = $97.70
  • UTI (Education): 5 shares at $25.77 = $128.85
  • ATAT (Alt. Energy): 5 shares at $27.01 = $135.05
  • QFIN (Finance): 3 shares at $38.85 = $116.55
  • UAL (Airlines): 2 shares at $95.11 = $190.22
  • TSM (Semiconductors): 1 share at $200.99 = $200.99

Total: $965.12

You get a seven-sector portfolio where a single issue or downturn in one sector won’t drag down your entire investment.

The «Magnificent Seven» are undoubtedly market leaders. But their sheer size means not only high entry costs but also limited growth potential, and their concentration in the tech sector reduces diversification. By comparing just 7 of our «Today’s TOP» stocks to the «Magnificent Seven», we’ve already seen an advantage. Now imagine that we offer not just 7, but 60 to 100 Strong Buy and Buy-rated stocks across diverse industries.

Here’s what our «Today’s TOP» selection offers:

  • Flexibility of choice: With a broad selection (60–100 stocks), you can tailor portfolios to any strategy — from conservative to aggressive.
  • Sector diversity: Invest in multiple industries within the American stock market, reducing reliance on a single segment and minimizing risks.
  • Affordability and potential: For the same $1,000, you can acquire a whole set of promising companies that haven’t yet reached the height of their popularity.
  • Robust analytical support: Strong Buy and Buy ratings indicate that the market sees fundamental growth potential.

Don’t limit yourself to big names and high price barriers. Build a portfolio that unlocks more opportunities and increases your chances of long-term investment success.

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