The Magnificent Seven stocks continue to be among the most closely followed by investors, analysts and market experts. In an interview with Benzinga, Freedom Capital Markets Chief Market Strategist Jay Woods shares his favorite Magnificent 7 stocks heading into 2026 and which of the seven he’s avoiding.
During an interview with Benzinga in September 2025, Woods said to stick with what was working when it came to big tech stocks and the Magnificent 7 stocks heading into the fourth quarter.
One of the big tech stocks that shone bright in the fourth quarter is a favorite for Woods heading into 2026.
“I love Alphabet over the long term. That’s one you put away,” Woods told Benzinga.
Don’t Miss:
Woods said Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) was previously caught up in antitrust litigation, which may have hurt the story.
“Look at what the stock has done.”
Woods said that while the stock has rallied in the fourth quarter, the company could still be undervalued, highlighting the potential for Waymo and the undervaluation of the company’s YouTube asset.
“That growth continues at an alarming rate.”
Another Magnificent 7 stock Woods highlighted for 2026 is Tesla Inc (NASDAQ:TSLA).
“I think Tesla’s a story to watch in 2026.”
Woods said that Tesla CEO Elon Musk survived Washington, D.C., and came out of a social media battle with President Donald Trump “unscathed.”
The market expert highlights Musk’s new pay package and the history he has with beating metrics for compensation that many people view as significantly challenging.
“He had a pay package that he hit all metrics when it came to EV sales.”
Woods said Musk’s new incentives include robotics, market capitalization and autonomous driving.
Tesla stock also looks strong heading into 2026 on technical levels, Woods told Benzinga, highlighting a breakout on the one-year chart.
“When you break out and now are going into a new year with momentum and you have a leader like Musk who’s incentivized for the stock to do well, this is the fuel you want to see.”
Trending: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro
Woods said Tesla stock has technical setups, momentum and a leader focused on hitting incentives heading into the new year.
The market expert highlights the $420 level for Tesla stock, a “great number in Musk World,” along with support at $460 as potential downside levels to watch. Woods sees Tesla stock potentially trading in the mid-$600s, which would provide around a 33% gain from current levels.
“I think a $666 target because we like fun numbers with Elon Musk is achievable given the trajectory that this stock is on both technically and the fundamental possibilities behind him focusing on his job.”
While Woods has his eyes set on Alphabet and Tesla among the Magnificent 7 stocks for 2026, there are a few of the seven stocks he’s avoiding.
“Meta is a stock that is now in a downtrend, a stock that has put so much money and emphasis into its spend and we’re not seeing the benefits from it,” Woods said.
Woods said that while he loves what Meta Platforms (NASDAQ:META) is doing with Instagram, the stock has broken down technically as it fails to get back above its 200-day moving average.
“They need to show results on this next quarterly report.”
See Also: Buffett’s Secret to Wealth? Private Real Estate—Get Institutional Access Yourself
The market expert told Benzinga that Meta stock “has more downside risk.”
Woods also sees some risk for Microsoft Corp (NASDAQ:MSFT) shares heading into 2026.
“Microsoft is another one. Topping formation developing there and it’s got me a little concerned.”
The market expert said that $475 is the level to watch and if Microsoft breaks below that level, there could be a “significant leg lower.”
Woods also told Benzinga that NVIDIA Corp (NASDAQ:NVDA) is a stock to watch for underperformance in 2026 among the Magnificent 7 stocks.
“Nvidia will have a good year. I just don’t know if we’re going to see that explosive growth to the upside from a stock performance point of view.”
In his weekly newsletter, Woods recently predicted that semiconductor stocks such as Nvidia could stall in 2026 and take a step back. Woods told Benzinga that while it’s not a Magnificent Seven stock, he prefers Micron Technology Inc (NASDAQ:MU) to Nvidia in 2026.
Not making the cut for favorite or least favorite Magnificent 7 stocks by Woods were Amazon.com (NASDAQ:AMZN) or Apple Inc (NASDAQ:AAPL).
Read Next: Wall Street’s $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen
Photo: Shutterstock
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga:
This article EXCLUSIVE: Jay Woods Picks His Favorite And Least Favorite Magnificent 7 Stocks For 2026 – ‘A Story To Watch’ originally appeared on Benzinga.com
