Looking at the current earnings of the Mag 7, I compared how much of each company's valuation comes from today's profits versus future growth expectations. What stood out is that $Meta Platforms, Inc.(META)$ , $Microsoft(MSFT)$ , and $Alphabet(GOOG)$ have a much smaller percentage of their value tied to future growth compared to the broader index.
While $Alphabet(GOOG)$ has its own story with search dominance, $Meta Platforms, Inc.(META)$ and $Microsoft(MSFT)$ are the ones that really caught my attention. Both are expected to grow at roughly twice the pace of the S&P 500 over the next five years, yet the market doesn't seem to price them like high-growth leaders. To me, these are two names the market is still underestimating.
Sometimes the biggest opportunities are in companies everyone already knows.
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