Mag 7 stocks, often known as the “Magnificent Seven,” represent an elite group of stocks from well-established, large-cap companies. These companies stand as industry giants, showcasing resilient earnings, a strong market presence, and substantial brand equity. Their steady financial performance and consistent track record make them standouts in the investment community. Mag 7 stocks are widely considered industry bellwethers, often establishing benchmarks for operational excellence and innovation.
Investing in Mag 7 stocks offers the advantage of relative stability and dependability. These stocks are renowned for exhibiting less volatility compared to the broader market, making them a popular choice for conservative investors. They frequently provide regular dividends, contributing to a dependable income stream. However, there are drawbacks as well. The substantial size and established nature of these companies may limit their growth potential compared to younger, more nimble firms. Additionally, due to their significant market capitalization, any major market shifts can significantly impact their stock prices.
For investors, Mag 7 stocks can serve as a strong core holding in a diversified portfolio, especially for those seeking long-term, stable growth. However, a prudent investment strategy would involve balancing these holdings with other assets to cater to varying risk and growth profiles. Taking all of this into consideration, here are two mag 7 stocks to watch amid their upcoming earnings announcements in the stock market now.
Prominent Mag 7 Stocks to Consider
Microsoft (MSFT Stock)
Kicking off our overview is Microsoft Corporation (MSFT). This global technology behemoth is best known for its software offerings, from the ubiquitous Microsoft Windows operating systems and Microsoft Office suite to the Internet Explorer and Edge web browsers. The company has also expanded into cloud computing with Azure, gaming via Xbox, and hardware with products like the Surface line of tablets.
Microsoft is set to reveal its most recent quarterly financial results this week, following the U.S. stock market’s closure on Tuesday. Last quarter, Microsoft reported an EPS of $2.99 per share, with revenue of $56.52 billion for Q1 2024. During the previous quarter’s conference call, Microsoft estimated Q2 2024 revenue in the range of $60.40 billion to $61.40 billion.
Since the beginning of the year, shares of Microsoft stock have surged by 9.51%. Moreover, during Monday’s late morning trading session, MSFT stock is enjoying a 0.59% uptick, trading at $406.30 a share.
Amazon (AMZN Stock)
Next on the list is Amazon.com, Inc. (AMZN), a multinational technology company renowned for its e-commerce platform. Amazon has further diversified its operations to include cloud computing services through AWS, digital streaming, artificial intelligence, and more.
Later this week, on Wednesday, Amazon will disclose its fourth quarter 2023 financial results. The company is set to release its Q4 2023 financial results following the close of the U.S. stock market. Last quarter, Amazon outperformed expectations, reporting an EPS of $0.85 and revenue of $143.08 billion.
Year-to-date in 2024, shares of Amazon stock have climbed by 6.14%. Additionally, during Monday’s late morning trading session, AMZN stock is holding steady at $159.16 a share.