3 Top Stocks That Aren't the Mag 7

• (0:35) - Finding Strong Growth Stocks Outside The Magnificent 7
• (4:30) - Tracey’s Top Stock Picks For Your Watchlist Right Now
• (24:45) - Episode Roundup: FAST, COST, BRK.B
•                 [email protected]

Welcome to Episode #459 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey is going solo to talk about three top big cap stocks that are not in the Magnificent 7. There are many other great companies that are growing their earnings. Look beyond the old technology standbys like Apple and Meta Platforms.

These three companies could even be described as “old economy” as they represent the construction, manufacturing, railroad and retail industries, among others.

Diversify your portfolio away from just seven companies. There are other great companies that deserve a look.

3 Top Stocks That Aren’t the Magnificent 7

1. Fastenal Company (FAST)

Fastenal is a distributor of industrial and construction supplies. Shares of Fastenal are trading near their all-time highs, up 37% over the last year.

It isn’t cheap. Fastenal trades with a forward price-to-earnings (P/E) ratio of 44. A P/E over 30 is often considered expensive. But Fastenal also has growth. Earnings are expected to be up 11% in 2025 and another 10.8% in 2026.

Should Fastenal be on your short list?

2. Berkshire Hathaway Inc. (BRK.B)

Berkshire Hathaway is the conglomerate of old economy companies, including BNSF Railway and Geico insurance. It is led by 95-year-old Warren Buffett. Buffett is retiring from the CEO position at the end of this year.

Shares of Berkshire Hathaway are up just 9% over the last year due to uncertainty now that Buffett is retiring. Shares trade with a forward P/E of 24.8. That’s expensive on a historical basis for Berkshire.

Earnings are expected to fall 7.7% in 2025 but gain 2.2% in 2026.

Should Berkshire Hathaway, one of the trillion-dollar companies, be on your short list?

3. Costco Wholesale Corp. (COST)

Costco is a warehouse retailer with stores in North America, Europe and Asia. Costco has been one of the top performing stocks over the last 5 years, gaining 161% compared to just 100% in the S&P 500.

It is not cheap. Costco trades with a forward P/E of 46.6. But the analysts are bullish. Earnings are expected to jump 10.3% in fiscal 2026 and 10.1% in fiscal 2027.

Should Costco be on your short list?

What Else Should You Know About These 3 Top Big Cap Stocks?

Tune into this week’s podcast to find out.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research