Wall Street analysts predict that the S&P 500 will see accelerated earnings growth for the second consecutive year in 2025. The 'Magnificent 7' stocks, which are currently trading at a premium valuation of 31 times forward price-to-earnings (PE), are expected to report significantly stronger earnings growth than the remaining 493 companies in the index. Analysts forecast earnings growth for the Magnificent 7 to range between 18% and 24% in the fourth quarter of 2024 and throughout 2025, compared to a more modest growth of 10% to 15% for the other S&P 493 companies. This trend suggests a potential slowdown in the growth premium associated with the Magnificent 7 stocks, which have been trading at a higher valuation compared to the rest of the S&P 500.