"Magnificent Seven" stocks now called "Lag 7" due to underperformance

U.S. large-cap growth stocks have struggled significantly in 2025, particularly the companies once known as the "Magnificent Seven." As of March 19, the Russell 1000 Growth Index has fallen into correction territory, indicating a decline of 10% or more from recent highs. Recent analysis suggests that these stocks are no longer performing well. They have adopted the nickname "Lag 7," reflecting their current underperformance compared to other market segments. This shift highlights concerns among investors about their growth potential. Investor sentiment remains cautious. Analysts warn that past performance does not guarantee future results. They advise investors to consider their options carefully before making decisions.