Nvidia Tops Jefferies' "Magnificent Seven" Rankings, Microsoft Trails Behind

Microsoft Ranked Lowest in Jefferies' Magnificent Seven Stock Analysis

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Jan 20, 2025
Summary
  • Nvidia earned the top spot in Jefferies’ Magnificent Seven rankings, while Microsoft ranked last due to below-average metrics
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Nvidia (NVDA, Financial) is the top performer of the 'Magnificent Seven' said Jefferies on Friday, while Microsoft (MSFT, Financial) is last. The group was evaluated based on quantitative factors, such as growth metrics, sell-side sentiment, price momentum, and valuation metrics, in the latest rankings report, which was released earlier.

Strong scores in growth, revisions, and return on invested capital (ROIC), favourable price momentum, and R&D efficiency versus capital expenditure gave Nvidia the number one slot. Meta Platforms (META, Financial), Apple (AAPL, Financial) and Amazon (AMZN, Financial) rounded out the middle of the list as Alphabet (GOOG, Financial) came in as the second pick. Tesla (TSLA, Financial) came in at sixth place.

The report cited below-average scores in most categories while saying sell-side sentiment helped Microsoft's ranking at seventh place. Jefferies said that all seven companies outperformed the S&P 500 over the past five years, but the performance of the companies was quite different based on the factors examined.

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