Amazon.com Inc. (AMZN:NSD) Analysts very Bullish with Strong Buy rating

STA Research
by: STA Research
amzn stock price

Based on the Amazon stock forecast from 35 analysts, the average analyst target price for the Amazon stock forecast is USD 173.74 over the next 12 months. Amazon stock forecast average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Amazon stock forecast is Slightly Bullish, which is based on 9 positive signals and 4 negative signals. At the last closing, Amazon.com Inc.’s stock price was USD 124.63. Amazon.com Inc.’s stock price has changed by +14.00% over the past week, +15.95% over the past month and -31.48% over the last year.

In North America and other countries, Amazon.com, Inc. engages in the retail selling of consumer goods and subscriptions. The business is divided into the North American, International, and Amazon Web Services segments (AWS). Seattle, Washington serves as the corporate headquarters for Amazon.com, Inc., which was founded in 1994. Address: 410 Terry Avenue North, Seattle, Washington, 98109-5210, United States

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth compared to its sector in the previous 5 years.

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price-to-earnings basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price-to-book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price-to-cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price-to-free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

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