Meta is the best “Magnificent Seven” stock right now, this investor says

ScotiaMcLeod Newman Group advisor and portfolio manager Greg Newman told BNN Bloomberg’s Market Call on April 24 that Meta Platforms  (Meta Platforms Stock Quote, Chart, News, Analysts, Financials NASDAQ:META) is the Magnificent Seven name with the most attractive setup.

Newman said Meta’s pullback this year has reflected AI investment concerns, legal challenges and child-safety issues, but he believes the risk-reward has become compelling.

“Zuckerberg’s a smart guy and they’re bolstering their position in AI,” Newman said. “The stock is down a lot. I think the risk-reward here looks very compelling.”

He noted Meta is trading at about 17x earnings while growing at roughly 17%, making it his preferred Mag Seven name at current levels.

Newman said the company still faces serious legal uncertainty, which he compared to tobacco litigation, but said the risk appears reflected in the share price.

“They’re going to have to write some really big checks and there’s that uncertainty as well,” he said. “But I think that’s in the stock at these levels.”

Meta shares have gained 29.8% over the past 12 months and 107.8% over five years. Of the analysts covering the stock, 73 rate it “Buy,” six “Hold” and one “Sell,” with a consensus price target of US$675.03.

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