The magnificent 7️⃣ of the U.S. stock market.

The Magnificent 7️⃣

Goldman Sachs expects that the 'Magnificent 7' of the U.S. stock market will continue to lead in terms of profitability and stock price performance in the coming years. David Kostin pointed out that compared to the remaining 493 stocks in the s&p 500 index, the Magnificent 7 outperform in all aspects. For example, between 2013 and 2019, the compound annual growth rate of the Magnificent 7 reached 15%, far higher than the 2% of the other 493 stocks. Goldman Sachs expects that the Magnificent 7 will achieve faster expected sales growth, higher profit margins, higher reinvestment rates, and a stronger balance sheet. Therefore, although the current prices of the U.S. Magnificent 7 may be relatively high, in the long run, Goldman Sachs predicts that they can maintain a compound annual growth rate of 11% from 2023 to 2025, which is 3% higher than the other 493 stocks.