Amazon.com Inc (AMZN:NSD) Analysts are bullish with a Strong Buy

STA Research
by: STA Research

Based on the Amazon.com Inc stock forecasts (amzn stock price) from 36 analysts, the average analyst target price for Amazon.com Inc is USD 172.84 over the next 12 months. Amazon.com Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Amazon.com Inc 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 121.14Amazon.com Inc’s stock price has changed by +7.38% over the past week, +4.68% over the past month and -34.52% over the last year.

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS).  The company serves consumers, sellers, developers, enterprises, and content creators. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.

 

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 is 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 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 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 amazon stock forecasts 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 in the previous 5 years compared to its sector.

What we don’t like:

Overpriced compared to earnings:

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

Overpriced compared to book value:

The AMZN stock price is trading high compared to its peer’s median on a price to book value basis.

Overpriced on cashflow basis:

The AMZN stock price 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 to buy.

Overpriced on free cash flow basis:

The AMZN stock price 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 to buy.

Disclaimer

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