With the Nasdaq Composite Index and S&P 500 in record territory, driven largely by the impressive success of the "Magnificent Seven" businesses as a group, investors might be wondering if there are even any worthy investment candidates out there. I'm here to tell you that there are indeed lucrative places to park your capital.

Even within the "Magnificent Seven," there is a dominant industry-leading enterprise that deserves some attention right now. This comes after the e-commerce stock has soared 22% so far in 2024 (as of April 5).

In the spirit of March Madness, this company could be a slam-dunk investment. Buying $1,000 worth of shares could be a smart move. Here's why.

Multiple growth trends

The business I'm talking about is none other than Amazon (AMZN 0.44%). This massive enterprise has its hands in numerous industries, all of which are benefiting from long-running growth tailwinds.

Amazon's key service is its thriving e-commerce operation. The website has billions of visitors each month, demonstrating its popularity.

According to data from the Federal Reserve, online shopping represented just 15.6% of all retail spending in the U.S. in the last quarter of 2023. There remains a large untapped opportunity for e-commerce to penetrate. Amazon is in the best position to capture a sizable chunk of this growth.

Another area that should continue propelling the business is streaming entertainment. Amazon Prime Video has become a top choice among viewers. These members could first sign up for the service for streaming content, but then over time, they might start shopping in the marketplace.

The final major secular trend working in Amazon's favor is cloud computing, a market that's estimated to be worth $1.6 trillion at the end of this decade. Amazon Web Services (AWS), which has top market share in the industry, has typically been the growth and profit driver for the overall business. Its operating margin was a superb 29.6% in Q4.

But AWS revenue was up by only 13% in 2023, a rate of change down substantially from previous years. Making matters worse, Amazon just announced layoffs affecting this division, indicating difficult times ahead.

The positive spin on this, though, is that AWS is poised to be a leader when it comes to AI capabilities thanks to its vast financial and data resources, as well as its huge customer base. This means there should be brighter days on the horizon.

Trading at a reasonable valuation

Amazon stock is up 120% since the start of 2023, benefiting tremendously from the ongoing bull market. Investors are right to wonder if now is still a good time to scoop up shares.

Let's take a closer look at the valuation. As of this writing, the stock trades at a price-to-sales ratio of 3.4. That's in line with the trailing-five-year average.

But what type of business are investors getting for the price tag? I touched on the various growth tailwinds that will continue to drive Amazon's top line in the years to come. In fact, Wall Street analysts estimate that the business will see its revenue rise at an annualized clip of 11.4% over the next three years.

Besides growth, investors can own a company that has a wide economic moat, which will protect it from the threat of competition. Amazon has unrivaled scale with its logistics footprint, allowing it to ship products at lower costs. Its two-sided online marketplace benefits from network effects. And Amazon continues to collect insane amounts of data on its customer base, which management uses to continuously improve product offerings.

Yes, technology is constantly changing the business landscape. However, Amazon is in such a strong competitive position that the chances it gets disrupted are low, in my opinion. This should give investors the confidence they need to buy and hold the stock for many years.