Many investors know about the Magnificent Seven stocks. If you haven’t heard of that phrase before, you will still recognize the stocks within that cohort. Microsoft (NASDAQ: MSFT ), Apple (NASDAQ: AAPL ) and Nvidia (NASDAQ: NVDA ) are three of the Magnificent Seven stocks, ranked by current market cap.
Most ETFs have large positions in these stocks, especially the ones that track broader indices. However, some growth gems aren’t as obvious. These picks are relatively overlooked but look ready to outperform most, if not all, of the Magnificent Seven stocks in the years ahead.
E.l.f.
Beauty (ELF) E.l.f.
Beauty (NYSE: ELF ) recently reported its 21st consecutive quarter of sales growth. The company also gained market share in the beauty industry for the 5th consecutive year while delivering more than $1 billion in net sales in fiscal 2024. The company ended on a strong note with 71% year-over-year (YOY) revenue growth in Q4 FY24.
Investors initially got spooked by this report, since e.l.f.
Beauty offered modest guidance that called for a 20% to 22% YOY net sales increase in fiscal 2025. While this represents a meaningful drop, e.l.
f. Beauty has always been conservative in its guidance. The company raised its guidance multiple times in fiscal 2024 and initially projected similar results for that year.
Instead of seeing revenue growth in the mid-twenties, investors got to enjoy 77% YOY net sales growth in fiscal 2024. The company’s shares are up 29% year-to-date and have su.