The "Magnificent Seven" Are Done Reporting for the Quarter. Here Are My Top 3 to Buy Now.

The "Magnificent Seven" stocks are some major tech companies that have a huge influence over the market. They are:

1. Nvidia (NASDAQ: NVDA)
2. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)
3. Apple (NASDAQ: AAPL)
4. Microsoft (NASDAQ: MSFT)
5. Amazon (NASDAQ: AMZN)
6. Meta Platforms (NASDAQ: META)
7. Tesla (NASDAQ: TSLA)

All seven of these stocks have wide followings, and each has now reported earnings for the first three months of 2026. But of the seven, which one of these is best? Let's take a look.

Image source: Getty Images.

Only a handful of companies stand out as disappointing

While I'm only going to pick three stocks as the best buys now, there are several in this group that could be considered solid buys. Starting with the top line, every company is looking up at Nvidia.

NVDA Revenue (Quarterly YoY Growth) data by YCharts

Nvidia clearly blows away the competition, which showcases the huge demand for its AI computing products. Meta Platforms also stands out as a much faster grower than its peers, while the other five are grouped in a pretty similar area.

On the earnings side of things, it's pretty much the same story, with Nvidia pulling away from the pack. However, Alphabet and Amazon also had a major earnings increase, but a lot of that came from increased investments.

NVDA EPS Diluted (Quarterly YoY Growth) data by YCharts

If a public company has a significant gain on investment, it must report that as net income, even if it doesn't sell. That may seem like an odd rule, but that's how accounting principles work. I think investors should look at cash from operations, as it measures how much more cash a company generates -- a far better measure of business success.

NVDA Cash from Operations (Quarterly YoY Growth) data by YCharts

That shifts the narrative, and all of a sudden, Tesla rockets up to Nvidia levels, with Amazon also being included. This makes sense, as Tesla is coming off a bad year, so growth seems imminent. Amazon is also intriguing, as it showcases that its cloud computing investments are starting to pay off.

The last item I want to look at is valuation, as the best company bought at the wrong price makes for a poor investment. Tesla trades at more than 200 times forward earnings estimates, and it skews the following chart, so I removed it. However, the remaining companies make for some interesting observations.

NVDA PE Ratio (Forward) data by YCharts

I haven't yet mentioned Apple, as it is near the bottom in all growth categories, yet it has the highest value. Nvidia and Meta are flip-flopped, as they are among the fastest growers, yet the cheapest available. That immediately vaults them into the top buys, but what about the third?

These three are my top "Magnificent Seven" stocks to buy now

So, Nvidia and Meta are in my top three. They are both cheap and growing quickly, and have a bright future. That easily makes them strong investment options, and I think investors should take any opportunity they get to load up on shares.

But what about the third?

Apple and Tesla are both out. They have premium valuations despite average growth results (outside of Tesla's major cash flow increase). And Tesla needs to sustain its substantial cash-flow increase for multiple years just to be valued at about the same range as its peers.

That leaves Microsoft, Alphabet, and Amazon as options. I wouldn't fault investors for choosing any of these three to include alongside Nvidia or Meta. However, I pick Amazon, which is seeing a ton of growth from its cloud computing platform, Amazon Web Services (AWS). This is where a large chunk of its growing cash flow is coming from, and even though you have to pay a premium over the other two, I think it's worth it.

Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.