By Daniel Foelber, The Motley Fool
Publication Date: 2026-03-08 19:37:00
Nvidia (NASDAQ: NVDA), Alphabet, Apple, Microsoft, Amazon, Meta Platforms (NASDAQ: META), and Tesla — collectively known as the “Magnificent Seven” — have produced monster gains for long-term investors. But all seven stocks have lost value so far in 2026 — and that should merit some attention from investors on the lookout for opportunities.
Nvidia and Meta Platforms — in particular — are compelling valued based on a key metric. Here’s why both growth stocks are selling off, and some context to help you decide which one could be the better buy for you in March.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
The price-to-earnings (P/E) ratio is one of the most popular metrics for evaluating stocks. And for good reason, as it’s simply the price of the stock divided by earnings per share.
Companies with clear ways to deploy capital effectively deserve premium valuations. A company like Coca-Cola can expand into new markets and acquire or develop new beverage lines. But it doesn’t have nearly as many levers to pull to accelerate earnings growth compared to a company like Amazon — which plays in so many different end markets.
The forward P/E ratio rewards companies by dividing the stock price by analyst consensus earnings estimates for the next…
