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Welcome to 2 Minute Analysis. Our goal is to not only entertain, but provide value and insights about the investments you care about. So, let’s throw 2 minutes on the clock and dive-in.
Today, we’re diving into Amazon.com, ticker symbol AMZN. Kicking things off here with the Quant Rating system, you’ll see that it has a Strong Buy rating on the stock, and there’s those five factor grades, which we’ll dive deeper into in just a moment.
Jumping over to Seeking Alpha Analysts, in aggregate they have a Buy rating on this stock, and that’s 18 analysts with coverage in the last 30-days. And lastly, Wall Street analysts currently have a Strong Buy in aggregate on this stock, and that’s 68 analysts in the last 90-days providing coverage here. To learn more about how the Seeking Alpha Quant system and Seeking Alpha Analysts outperform the market, visit the link in the description of this video.
So, let’s dive deeper. This is a $2.37 trillion market capitalization company in the consumer discretionary sector. Competitors include the likes of Microsoft, Alphabet, and Walmart, all familiar names to a lot of investors.
Now, let’s dive into some of the metrics. Kicking things off here with the Valuation grade, couple of things to highlight. Price-to-sales, 3.50 compared to the sector at just 0.97, showing that it’s a little bit more expensive of a stock here, but to point out the PEG GAAP ratio factoring in that growth, you got 0.6, compared to the sector at 0.80, which shows that it still has a little bit of favorable likeness to it.
Jumping over to the Growth grade, which is currently A-, while the revenue growth year-over-year is 10.87, compared to the sector median of just 2.82, but also the EPS GAAP growth is almost 91% year-over-year, compared to the sector at just 1.5% showcasing robust financial performance.
Jumping into the Profitability grade, which is currently A+, while net income margin is almost 11%, compared to the sector at 4.34%, which is nice to see, but I also want to highlight this. Cash from operations is a 121.14 billion, compared to the sector at just 285 million. Talk about a cash cow here.
Jumping into the Momentum, B- grade here, and that’s due to the likes of one-year price performance being 22.6%, compared to the sector at negative 2, but more recently on the three month, we have negative 0.76, compared to the sector, which is up 2.39. So, it’s showing a little bit of consolidation in the near term is what it looks like.
And then lastly, for Revisions, B+ grade on this one, that’s due to the earnings per share having 50 up revisions, but it does have one down revision in the last three months. And if we look at the revenue numbers, that is 52 up revisions and one down revision in the last month. So that one down revision weighing on the grade slightly there.
So, is now the time to add the stock to your portfolio? Well, if we look at some of the recent analysis written by Seeking Alpha Analysts, it looks like Buy is pretty much across the board. You do have a Strong Buy from RI Research, and we do have a Hold from James here more recently as well. JR Research, we’ll just go ahead and click on this. I can’t encourage you all enough. Go read these analysis articles here on Seeking Alpha. You’ll see that he’s been writing about Amazon for quite a while, has some great Buy ratings along the way, and you can always go back and see what he wrote about historically in these moments in time. Full transparency here on Seeking Alpha.
Now, that’s going to wrap it up for this episode. If you have a ticker you want us to cover, add it to the comment section below, and don’t forget to follow Seeking Alpha so you get notified when the next 2-Minute Analysis gets published.
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