The number of stocks outperforming the S&P 500 has exploded since the start of 2025. While most members of the "Magnificent Seven" have struggled.

Super Micro shares led the gains with a 49% rally as of Feb 25 this year. CVS Health saw significantly gains of 42% while Philip Morris rose 31%.

The number of S&P 500 issues outperforming the broader index has shot higher in early 2025. Options traders expect the fortunes of individual S&P 500 will increasingly diverge over the next month.

Typically, the dispersion index declines as companies report their quarterly earnings, according to Cboe Global Markets. But over the past few weeks, the index has risen instead.

There are a few reasons for this. One is the quality of corporate results. Just as Wall Street had expected, earnings growth has started to broaden out during the fourth quarter. Previously, it had been extremely concentrated among members of the "Magnificent Seven," helping to justify the market's lopsided performance.

Another is an increasingly uncertain outlook for markets and the economy. Among other things, investors are raising questions about the potential risks and rewards tied to President Trump's policy agenda, the wisdom of some companies' massive investment in AI-related infrastructure, and the underlying strength of the U.S. economy.

More recently, expensive corners of the market, like the information technology sector, have stalled. Meanwhile, cheaper consumer staples, financials and healthcare stocks have tallied a strong start to the year.

Shares of these companies have helped to pick up the slack as most members of the "Magnificent Seven" have struggled. With the exception of Meta Platforms Inc., $(META)$ which has seen its shares soar in the new year, every other member of the "Magnificent Seven" cohort has either fallen, or barely budged, since the beginning of 2025.

Despite this, the 10 largest stocks in the S&P 500, a group that includes every member of the "Magnificent Seven," still account for more than 37% of the index's entire market capitalization, according to an analysis from ClearBridge Investments.