May blooms from April showers." Could they offer a terrific opportunity to invest in mega-cap growth stocks? Maybe. After big increases, the "Magnificent Seven" stocks may not seem to have much left to grow. Analysts still like several of them, especially one. Wall Street recommends this Magnificent Seven stock for April.
Remove names from list Several names can be crossed off fast. Analysts expect some Magnificent Seven stars to tire. Over the past year, Meta Platforms (NASDAQ: META) shares have risen 140%. Wall Street anticipates the stock's momentum to stall. Meta's consensus 12-month price objective is somewhat below its current share price.
Nvidia's share price rose 240% throughout the same period, making it an even larger winner. Again, analysts doubt the chipmaker has much potential to grow. Nvidia's average price target has no upside.
Similar story with Microsoft (NASDAQ: MSFT). The IT behemoth has gained almost 50% in the past year, but the future may be tougher. Microsoft investors agree on a price objective less than 1% above present levels. Tesla (NASDAQ: TSLA) doesn't excite Wall Street. The average price target for the electric vehicle company is less than 2%, despite being the weakest performer in the Magnificent Seven over the past year.
The "A team"—Amazon, Alphabet, and Apple—remains the top competitors. All three equities are tied as Wall Street's favorite.
Amazon shares have risen almost 80% in the past year, making it the largest winner of these three. Analysts believe the e-commerce and cloud services company has potential to grow with a consensus price target approximately 7% above the current share price. Second place is Alphabet, parent of Google. Wall Street expects another 8% gain after the stock's roughly 50% surge in the past year.
Interestingly, analysts recommend Apple as the best Magnificent Seven stock to buy in April. More than 8% above the current share price, the average 12-month price target for the iPhone maker suggests more upside than Wall Street expects for Alphabet. Apple's 12-month performance trailed all Magnificent Seven stocks except Tesla. Revenue rose 2% year-over-year in the quarter ending Dec. 30, 2023.
Is Wall Street right about Apple? Analysts' price targets should be shaken, not swallowed. However, Wall Street may be right about Apple's share price climbing in the coming months. The consensus is Apple is behind in AI. That's partially because the corporation keeps its plans more secret than most digital giants. Investors may fear the worst when unprepared.
Apple may unveil its long-awaited AI strategy at its June developer conference. At the annual meeting earlier this year, CEO Tim Cook said Apple is "investing significantly" in generative AI due to its "incredible breakthrough potential." He said he would reveal more in 2024.
Apple may not unveil as much as investors want or its AI plan may disappoint. However, the corporation may finally deliver the "wow" it's been missing. This amazing Seven stock may become much more amazing.
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