Let’s reassess the active stocks with an eye toward AMZN stock. Just how should we respond to Wednesday’s drubbing? Is the mighty fruit now destined to decay? Or is this a mere bruising and nothing more? On 13 March, shares of Amazon.com, Inc. (NASDAQ:AMZN) closed higher after a volatile session. The shares accumulated 17.71 points or 1.06 percent at $1690.81 with a light trade volume of 3.539 million shares. After opening the session at $1683, the shares went as high as $1700 and as low as $1679.35, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $833 billion and now has 492.76 million shares outstanding. Amazon.com, Inc. (AMZN) stock has gained 6.27 percent of market value in 21 trading days.
AMZN stock has a trailing 3-year beta of 1.63, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $19.83 a share in the trailing twelve months. The stock’s value has surged 12.57 percent year to date (YTD) against a rise of 5.78 percent in 12 month’s time. The company’s shares still trade -17.54 percent away from its 1-year high of $2050.50 and 29.37 percent up from 52-week low of $1307.00. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
Amazon.com, Inc. (AMZN) will probably climb 22.99 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $2450-month high price target. This represents a whopping 44.9 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $2100, which represents a return potential of 24.2 percent when compared to the closing price of the stock of $1690.81 on Wednesday, March 13. The lowest price target for the stock is $1850 — slightly more than 9.42 percent from AMZN’s current share price.
History has shown that shares in Amazon.com, Inc. have gone up on 19 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. Investors will get their next glimpse of AMZN’s Q1 earnings on April 25. Analysts are forecasting revenue to climb 16.8 percent to $59.6B in the fiscal first quarter, while earnings are seen soaring by nearly 44.65 percent to $4.73 per share. It earned $6.04 per share, better than the $5.68, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $72.4B, better than the $71.9B analysts expected. Earnings are estimated to increase by 335.7 percent this year, 45.15 percent next year and continue to increase by 43.81 percent annually for the next 5 years.
The stock is currently hovering around the first support level of $1680.11. Below this, the next support is placed in the zone of $1669.4. Till the time, the AMZN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 58.24 on daily chart, which may remain a cause for concern. If the price breaks below $1669.4 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1700.76 mark may result into a pull-back move towards $1710.7 level.
Shares of Amazon.com, Inc. (AMZN) are trading at a P/E ratio of 249.69 times earnings reported for the past 12 months. The industry AMZN operates in has an average P/E of 61.29. Its P/E ratio went as low as 153.07X and as high as 676.78 over the 5-year span.Further, it is sporting a 3.58 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.24. 40.2 percent is the gross profit margin for Amazon.com, Inc. and operating margin sits at 5.3 percent. Along with this, the net profit margin is 4.3 percent.