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The "Magnificent Seven" Are Still Growing Faster Than the Rest of the S&P 500. Here's When That Could Change, According to Wall Street Analysts.
The high valuations of most of the group could be a concern.
The S&P 500 (SNPINDEX: ^GSPC) has produced phenomenal returns over the last two and a half years since the bottom of the 2022 bear market. The index is up nearly 70% since Oct. 2022, but much of that gain has been driven by just a handful of stocks. The "Magnificent Seven" have, for the most part, outperformed the benchmark over that period, and there's a clear reason why.
As a group, the Magnificent Seven have produced much better earnings growth than the rest of the S&P 500. Not only that, they've consistently beaten high earnings expectations. That trend continued in the first quarter, but analysts are starting to think their phenomenal run of outperforming everything else in the market may come to an end soon.
Here's what investors need to know.
