Top money managers pick the stocks they like for 2024 that aren't the Magnificent Seven
There are plenty of stocks other than the so-called "Magnificent Seven" that are appealing right now, top money managers told CNBC on Thursday. The mega-cap tech stocks that make up the " Magnificent Seven " — Apple , Alphabet , Meta , Microsoft , Amazon , Nvidia and Tesla — each gained at least 48% last year. They make up about a quarter of the S & P 500's total market share. While you can still have high growth in those stocks, there should be a broadening out of the rally and other stocks that should do well, said Bryn Talkington, managing partner at Requisite Capital Management, in a CNBC Pro Talks interview with Bob Pisani. For one, software stocks such as Salesforce are adjacent to the Magnificent Seven, have done well and have a "very long trajectory," she said. Outside of that, she likes the Invesco S & P 500 Equal Weight ETF (RSP) to get that broad access. "We bought it this year, because we're saying, 'Hey, these are cheap stocks. We're going to own 500 large-cap stocks, we just treat them equally,'" Talkington said. Meanwhile, Kevin Simpson, founder and chief investment officer at Capital Wealth Planning, likes "old school" technology names such as Broadcom , Cisco and IBM . "They have made acquisitions that bring them into the 21st century," he said. "While you're waiting for things to have that breadth, getting a very solid, consistent and increasing dividend is something that makes us very comfortable as shareholders." Talkington also likes dividend names, such as energy stocks. One name on her list is Diamondback Energy . "This company is a juggernaut of … free cash flow yield," she said. The energy names Simpson owns are Chevron and ConocoPhillips .