Zacks Market Edge Highlights: TSLA, NVDA and LLY

For Immediate Release

Chicago, IL – January 20, 2026 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:  https://www.zacks.com/stock/news/2819495/the-magnificent-7-is-over-what-stocks-will-replace-it

The "Magnificent 7" Is Over. What Stocks Will Replace It?

Welcome to Episode #471 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.

As we start 2026, it’s important to check-in on the largest companies which are driving this market higher.

First there were the FAANG stocks. Then there was the FANGMAN stocks because people wanted to add Netflix to the list.

A few years ago, FANGMAN just kind of died. Tesla was surging again and investors wanted a new acronym in which to invest which also included Tesla.

That’s when the “Magnificent 7” stocks were born. It included Alphabet, Meta Platforms, Apple, Microsoft, Tesla, NVIDIA, and Amazon. It seemed like a sure thing list of the most popular growth companies.

Maybe They Aren’t So Magnificent?

While most of these stocks are among the best performers of the last 10 years, it starts to look a bit different if you look at more recent performance.

Because of the AI Revolution, NVIDIA is the best performer of the last 5 years among the Magnificent 7, with shares up 1344% as of Jan 13, 2026.

The S&P 500 was hot over the last 5 years; it gained 84.7% during that time. But two of the Magnificent 7 stocks didn’t even beat the S&P 500: Tesla and Amazon.

Are they “magnificent” if they aren’t even outperforming the S&P 500?

A Stock to Kick Out, One to Leave In and Another to Let In

Maybe it’s time to do some shuffling of the Magnificent 7 list. Right now, it is dominated by technology companies. Why not bring in other industries?

But first, we would need to kick some out, and let some new companies in.

1. Tesla, Inc. TSLA

The reason FANGMAN died was to add Tesla to the list of the must-own stocks. Shares are trading near their all-time highs again, but they were volatile in 2025. Shares are up just 11% over the last year.

Tesla’s been struggling. Earnings fell 22.4% in 2024 and are expected to decline another 33.5% in 2025. The Zacks Consensus is looking for earnings growth of 39.1% in 2026, but 5 estimates have been cut in the last 60 days, with one estimate even cut in the last week.

Tesla is not cheap. It has a forward price-to-earnings (P/E) ratio of 195 but it has never been cheap. The difference is that investors are now demanding better results.

Should Tesla be removed from the Magnificent 7 in 2026?

2. NVIDIA Corp. NVDA

NVIDIA: you either love it or you hate it. But its business performance is something we will never see again in our lifetimes. In fiscal 2025, NVIDIA grew earnings 130% and is expected to grow earnings another 55.9% in fiscal 2026. It’s a $4.5 trillion company growing at this rate. That’s incredible.

After soaring in 2023 and 2024, the shares were up “just” 39.2% in the last year. NVIDIA is attractively priced with a forward P/E of 39 and a PEG ratio of 0.85. A PEG ratio under 1.0 usually indicates a company has both growth and value.

Should NVIDIA stay in the Magnificent 7 in 2026?

3. Eli Lilly and Co. LLY

Eli Lilly is a large cap pharmaceutical company which makes several weight loss drugs including Zepbound, which is an injectable. It is also looking to release Orforglipron, which is a pill, and Retatrutide, which is a next generation injectable showing good results in early trials.

Shares of Eli Lilly were up 38.3% over the last year. It has been hitting new all-time highs in 2026. Eli Lilly is expected to grow earnings by 83.6% in 2025 and another 39.9% in 2026.

It’s still attractively valued even after the rally. It’s trading with a forward P/E of just 32 and a PEG ratio of 0.78. A PEG ratio under 1.0 means it has both growth and value.

Should Eli Lilly be included in the “next” Magnificent 7?

What Else Should You Know About the Magnificent 7 Stocks in 2026?

Listen to the podcast to find out what other stocks Tracey thinks should be cut and which should be included.

[In full disclosure, Tracey owns shares of GOOGL, MSFT, AMZN in her own personal portfolio and LLY in Zacks Insider Trader.]

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