Amazon Inc’s large players volume is surging higher after it had its Outperform rating reaffirmed by analysts at Credit Suisse. Credit Suisse now has a $1,350 price target on the stock, up previously from $1,100.00. This represents 35.7% upside from the previous close of $995.00.
Amazon Inc also had its Buy rating reaffirmed by analysts at Canaccord Genuity. Canaccord now has a price target of $1,200.00 on the stock. This represents a 20.6% upside from the previous close of $995.
Morgan Stanley says that Amazon’s private-label brand could be a $1 billion boost to its profit by 2019. You can read more about Amazon’s private-label brand here.
Amazon Inc Stock Chart
Large players volume is blasting off to the moon. The Twiggs Money Flow is positive but it’s not surging higher as we would like to see.
Price movement has been a little bit too volatile to find a good entry and exit point. It is probably a good idea to wait for a consolidation first.
Amazon (AMZN) has a Return On Assets of 2.19%. This is about inline with the industry average of 2.19%. AMZN has a Profit Margin of 1.28%. This is about inline with the industry average of 0.73%. AMZN has a Piotroski-F score of 5.00. This indicates an average health and profitability for AMZN. AMZN's Return On Equity of 8.28% is worse than the rest of the industry. The industry average Return On Equity is 12.32%. 85% of industry peers have a better Return On Equity.
Valuation has always been the weakest metric for Amazon (AMZN). The Price/Earnings Ratio is 247.89, which means the current valuation is very expensive for AMZN. With a Price/Earning Ratio of 247.89, AMZN is valued higher than the industry average, which is at 22.47. 100% of the companies listed in the same industry are cheaper than AMZN! With a Forward Price/Earnings Ratio of 272.12, AMZN is very expensive. The high PEG Ratio, which compensates the Price/Earnings for growth, indicates AMZN does not grow enough to justify the current Price/Earnings ratio. With a price book ratio of 20.16, AMZN is expensive. When comparing the price book ratio of AMZN to the average industry price book ratio of 2.94, AMZN is more expensive than its industry peers. 91% of the companies listed in the same industry are cheaper.
Amazon's (AMZN) incredible growth potential is what justifies the expensive valuation. AMZN shows strong growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 60.65% yearly. The Earnings Per Share is expected to grow by 40.30% on average over the next 2 years. This is a very strong growth. The EPS growth is accelerating: in the next 2 years the growth will be better than in the last years. Looking at the last year, AMZN shows a very strong growth in Revenue. The Revenue has grown by 24.44%. The Revenue has been growing by 19.70% on average over the past 5 years. This is very good. AMZN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.48%.
AMZN has an Altman-Z score of 6.33. This indicates that AMZN is financially healthy and little risk of bankruptcy at the moment. The Altman-Z score of AMZN is much better than the industry average of 3.18. AMZN has a Current Ratio of 1.01. This is a normal value and indicates that AMZN is financially healthy and should not expect problems in meeting its short term obligations. The Debt to Equity ratio of AMZN is inline with the industry averages. AMZN has a Piotroski-F score of 5.00. This indicates an average health and profitability for AMZN. Compared to an average industry Current Ratio of 1.21, AMZN is worse placed to pay its short term obligations than its industry peers. AMZN has a Quick Ratio of 1.01. This is a bad value and indicates that AMZN is not financially healthy enough and could expect problems in meeting its short term obligations. When comparing the Quick Ratio of AMZN to the average industry Current Ratio of 0.86, AMZN is less able to pay its short term obligations than its industry peers.
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