When a group of stocks regularly outperforms the broader market, Wall Street analysts like to bundle them together so it's easy for investors to separate them from the rest of the pack. In 2017, CNBC financial analyst Jim Cramer coined the FAANG acronym to describe five of the largest technology companies at the time:

In 2023, Bank of America analyst Michael Hartnett identified a new group of stocks and named them the "Magnificent Seven." Those stocks delivered an average return of 112% last year, which crushed the 24% gain in the S&P 500 index. The Magnificent Seven includes:

Image source: Nvidia.

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Source Fool.com