Amazon is the cheapest of the Magnificent Seven stocks by this important measure

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A comparison of valuation ratios and expected growth through 2025 highlight Amazon as a "happy medium" among the biggest tech companies.

Large tech-oriented companies have resumed their dominance during this year’s market recovery, so it isn’t much of a stretch to refer to a core group as “the Magnificent Seven.” The group is led by Nvidia Corp., whose shares nearly tripled during the first half. But Amazon.com Inc. is an interesting stock right now, because it is the cheapest among the seven companies on a forward price-to-sales basis. And that measure has always been important for the stock.

For investors who wish to look beyond the current Magnificent Seven, Barbara Kollmeyer’s Need to Know column on Monday highlighted what may be “the next Magnificent Seven,” according to analysts at Goldman Sachs. A value case for Amazon’s stock among the Magnificent Seven Leaving the group in the same order as they are listed above, let’s look at two valuation measures for the Magnificent Seven and then sales-growth projections through 2025.

Amazon trades at the lowest forward price-to-sales ratio among the Magnificent Seven, by far, and it is even lower than that of the S&P 500. For the 10-year comparisons, Meta Platforms Inc. META and Alphabet Inc. GOOGL also appear to be inexpensive by this measure. But they don’t compare very well to Amazon, based on the next set of estimates.

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