Not Nvidia. Not Microsoft. This "Magnificent Seven" Stock Is the Cheapest Right Now.
Even after removing the effect of one-time accounting benefits, one name remains at the bottom of the valuation pile.
Alphabet (GOOG -1.08%) (GOOGL -1.24%), a member of the "Magnificent Seven" stocks, is currently the most affordable option among the group. With a price-to-earnings ratio of just over 16 times this year's earnings projection of $20.59 per share, Alphabet appears to be a bargain compared to other Magnificent Seven stocks. Its earnings projection includes a $6.26-per-share accounting benefit linked to investments in SpaceX and Anthropic, which could drive future growth.
Unlike other Magnificent Seven stocks, Alphabet's strong revenue mix, including reliable cash cow search-based advertising, makes it better positioned to weather potential headwinds. While Nvidia and Meta are technically more attractive on a forward-looking basis, Alphabet's stability and competitive advantages make it a more compelling choice for investors.
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