Growth Stocks Better Than The Mag 7 To Buy Today

"If you're heavily invested in the Magnificent Seven stocks (if you own S&P 500 or Nasdaq 100 ETFs, you've already got this base covered), you're probably delighted with the returns you've gotten over the past couple of years. And while the terrain could get a bit rougher and somewhat less rewarding moving forward, as valuations and expectations rise in the face of potentially overlooked risks that lie ahead (are investors too upbeat on a more dovish Fed? What about the state of the AI boom?), I still think it's not a good idea to subscribe to the "AI bubble" chatter by selling out your tech-focused names, especially the ones that are still generating fantastic earnings with valuation metrics that aren't yet absurdly high."

"In short, the Magnificent Seven group is great and I wouldn't bet against them, even now that September has arrived, and, with that, the potential for a volatility storm. Indeed, the days of sleepy August trading days are over, and post-Labor Day, we'll get a glimpse of how investors are ready to respond to what's been a fairly decent summer for mega-cap tech."

"Just because the Mag Seven trade has what it takes to level up in the final quarter doesn't mean it's the only tech names worth picking up as we head back into return-to-school season. There are some highly underrated and discounted growth stocks, particularly in the software space, that I believe offer significant value for money. And in this piece, we'll look at two such names. Salesforce Despite its Age"

The Magnificent Seven have delivered strong recent returns but face rising valuations and potential risks, including investor optimism about a dovish Fed and uncertainties around the AI boom. Selling high-quality tech names solely over "AI bubble" concerns may be unwise, particularly for companies still producing strong earnings with reasonable valuation metrics. Market volatility can increase after Labor Day, which could test investor sentiment toward mega-cap tech. Meanwhile, several underrated and discounted growth stocks—notably in the software sector—provide attractive value opportunities. Salesforce and Netflix are highlighted as non-Mag Seven names with notable growth potential.

Read at 24/7 Wall St.