Analysts rate Amazon Inc. (AMZN:NSD) with a Strong Buy, $4077 Target

STA Research
by: STA Research
amazon inc. stock

Analysts rate Amazon Inc. stock with a consensus Strong Buy rating and a 12-month average target price of $4076.93 per share.

MKM Partners maintained Amazon Inc. with a Buy rating, and lowered the company’s target price to $4000 from $4100.

Based on the Amazon Inc. stock forecasts from 30 analysts, the average analyst target price for Amazon Inc. is USD 4,076.93 over the next 12 months. Amazon Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Amazon Inc. is Slightly Bullish, which is based on 8 positive signals and 4 negative signals. At the last closing, Amazon Inc.’s stock price was USD 3,162.31. Amazon Inc.’s stock price has changed by +146.56% over the past week, -62.70% over the past month and -5.17% over the last year.

Amazon, 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). Amazon, 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 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.

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 stock 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 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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