Cash Flow Reigns Supreme: Ranking the 'Magnificent Seven' Stock Market Leaders

The 'Magnificent Seven' have been driving growth in the stock market, but their attractiveness varies greatly. To gauge this, we look at their forward-year cash flow. Based on Wall Street's consensus estimates, here's how these seven companies rank from most to least attractive:

Nvidia (NVDA) ranks 16, followed by Alphabet (GOOGL/GOOG) at 15.9 and Microsoft (MSFT) at 15.1. Amazon (AMZN) comes in at 11.2, with Meta Platforms (META) at 9 times estimated forward-year cash flow.

At the opposite end of the spectrum are Apple (AAPL), with a P/E ratio of 28.2, and Tesla (TSLA), at 76. Both companies have historically been pricey based on future cash flow.

META's family of apps attracted an average of 3.6 billion daily users in June, giving it exceptional ad pricing power. Generative AI is also boosting its advertising platform. Meanwhile, Amazon leads with its dominance in online retail sales and cloud infrastructure services, AWS, which has a $168.8 billion revenue run rate.