‘Magnificent Seven’ rising in popularity
SINGAPORE: The stellar rally in the Magnificent Seven tech megacaps is prompting analysts across the globe to apply the snappy moniker to other high-growth stocks.
At least three recent research reports adopted similar appellations. Analysts from Goldman Sachs Group Inc released a report in Tokyo last week highlighting a group of stocks that could serve as Japan’s equivalent of the Magnificent Seven that have powered US stocks to a record high.
On Tuesday, an independent equities analyst who publishes on Smartkarma used Europe’s Magnificent Eleven as the title for a report on the so-called ‘Granolas’, which comprise the region’s biggest names, including GSK Plc, Roche Holding AG and ASML Holding NV.
Over in Pakistan, Chase Securities released a note dubbed Pakistan’s Magnificent Seven
on the same day for the so-called Shimple, a grouping that includes the nation’s biggest tech company, Systems Ltd, and Hub Power Co, a major utility.
The widespread adoption of the term in research reports reflects the awe-inspiring ascent of the US tech megacaps. The index of the seven stocks — Apple Inc, Microsoft Corp, Nvidia, Alphabet Inc, Amazon.com Inc, Meta Platforms Inc and Tesla Inc — more than doubled last year versus the S&P 500’s 24% gain.
The Magnificent Seven’s popularity isn’t restricted to stocks. Macro research provider Qi Analytics’ recent note was titled Magnificent Macro Momentum, while Nuveen’s Chief Investment Officer Saira Malik referred to one of her weekly commentaries as Magnificent Munis.
Coined by Michael Hartnett, a global strategist at Bank of America Corp, the Magnificent Seven label draws inspiration from the 1960 Western classic of the same name, which portrays a group of seven gunmen. That movie was based on Akira Kurosawa’s 1954 epic Seven Samurai.