Amazon.com, Inc. [AMZN] is following upward trend in the market concluded with the last trading session. The shares of the Services sector company has a current value of $1776.12 after AMZN shares went up by 0.75% during the last trading session. One of the reasons why Services stocks may go bullish is increased momentum in the press.
Amazon.com, Inc. [NASDAQ:AMZN]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Amazon.com, Inc. [AMZN] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give AMZN an Buy rating. Its stock price has been found in the range of 1307.00 to 2050.50. This is compared to its latest closing price of $1762.96.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Amazon.com, Inc. [AMZN] is sitting at 1.50. This is compared to 1 month ago, when its average rating was 1.54.
For the quarter ending in Jun-19 Amazon.com, Inc. [AMZN] generated $63.4 billion in sales. That’s 1.53% higher than the average estimate of $62.45 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Thu 24 Oct (In 70 Days).
Fundamental Analysis of Amazon.com, Inc. [AMZN]
Now let’s turn to look at profitability: with a current Operating Margin for Amazon.com, Inc. [AMZN] sitting at +5.46 and its Gross Margin at +40.25, this company’s Net Margin is now 4.80%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 15.44, and its Return on Invested Capital has reached 11.90%. Its Return on Equity is 28.27, and its Return on Assets is 6.85. These metrics all suggest that Amazon.com, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Amazon.com, Inc. [AMZN] has generated a Total Debt to Total Equity ratio of 113.18. Similarly, its Total Debt to Total Capital is 53.09, while its Total Debt to Total Assets stands at 30.30. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 91.36, and its Long-Term Debt to Total Capital is 42.86.
What about valuation? This company’s Enterprise Value to EBITDA is 35.60 and its Total Debt to EBITDA Value is 1.95. The Enterprise Value to Sales for this firm is now 3.58, and its Total Debt to Enterprise Value stands at 0.06. Amazon.com, Inc. [AMZN] has a Price to Book Ratio of 16.93, a Price to Cash Flow Ratio of 24.44 and P/E Ratio of 73.69. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Amazon.com, Inc. [AMZN] earns $359,671 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 16.59 and its Total Asset Turnover is 1.58. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.85 and its Current Ratio is 1.10. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Amazon.com, Inc. [AMZN] has 501.58M shares outstanding, amounting to a total market cap of $890.87B. Its stock price has been found in the range of 1307.00 to 2050.50. At its current price, it has moved down by -13.38% from its 52-week high, and it has moved up 35.89% from its 52-week low.
This stock’s Beta value is currently 1.56, which indicates that it is 1.90% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 36.67. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Amazon.com, Inc. [AMZN] a Reliable Buy?
Amazon.com, Inc. [AMZN] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.