Which Magnificent 7 Stock Will Do Best In Santa Claus Rally? Tesla Edged Out As 28% Select…

Benzinga readers pick which Magnificent 7 stock could have the best performance if there is a Santa Claus rally to close 2024 and kickstart 2025.

What Happened: The majority of the Magnificent 7 stocks have outperformed the S&P 500 year-to-date in 2024. With a limited number of trading days left to close out the year, one last question on the mind of investors is whether there will be a Santa Claus rally.

The term “Santa Claus rally” was first used by Yale Hirsch in 1972 in the Stock Trader's Almanac. The term is associated with the last five trading days of a year and the first two days of the following year.

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Combine the Santa Claus rally potential and the Magnificent 7 outperformance in 2024, and you have the latest Benzinga poll.

"Which Magnificent 7 stock will do the best if there's a Santa Rally?" Benzinga asked.

The results were:

• NVIDIA Corporation NVDA: 28%
• Tesla Inc TSLA: 25%
• Amazon.com Inc AMZN: 17%
• Alphabet Inc GOOGGOOGL: 9%
• Apple Inc AAPL: 9%
• Meta Platforms META: 7%
• Microsoft Corporation MSFT: 5%

Nvidia was the winner of the poll with more than one-fourth of the vote, which comes as the stock is the top performer among the Mag 7 stocks for year-to-date and five-year gains. Trailing Nvidia was Tesla, with exactly one-fourth of the vote.

Amazon also received a double-digit percentage ranking third at 17%. The other Mag 7 stocks had much smaller percentages in the poll.

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Why It's Important: The expectation for a Santa Claus Rally comes with major stock market indexes enjoying a strong 2024 and could add to their year-to-date gains.

Here are the current year-to-date returns of three of the largest market index ETFs.

• SPDR S&P 500 ETF Trust SPY: +23.8%
• Invesco QQQ Trust QQQ: +28.1%
• SPDR Dow Jones Industrial Average ETF DIA: +12.7%

For comparison, here are the year-to-date returns of the Magnificent 7 stocks:

• Nvidia: +177.8%
• Tesla: +77.4%
• Meta Platforms: +72.9%
• Amazon: +49.8%
• Alphabet: +38.3%
• Apple: +35.8%
• Microsoft: +18.7%

Nvidia has significantly outperformed the S&P 500 and other major indexes and also the other Magnificent 7 stocks. The Benzinga poll shows that readers think Nvidia could go out on a high note in 2024 and kick 2025 off with a bang if there is a Santa Claus rally.

Only Microsoft trails the S&P 500 and Invesco QQQ Trust year-to-date returns in 2024, showing the strength of the Magnificent 7 stocks this year.

A recent Benzinga poll asked if any Magnificent 7 stocks could beat Nvidia for stock returns in 2025. The results were:

• None – Nvidia will dominate: 48%
• Tesla: 27%
• Amazon: 8%
• Meta: 7%
• Alphabet: 6%
• Microsoft: 3%
• Apple: 2%

The poll found the near-majority predicting Nvidia will have the strongest growth in 2025 and dominate the Magnificent 7 stocks once again.

Based on the recent polls, Benzinga readers don't expect the gains for Nvidia to stop anytime soon and a Santa Claus rally could accelerate the company's potential 2025 gains.

Read Next:

• Santa Rally: 10 S&P 500 Stocks That Outperform In December’s Second Half

The study was conducted by Benzinga from Dec. 18 through Dec. 19, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 169 adults.

Image created using photos from Shutterstock.