What Are Analysts Saying About Amazon?
- By Brett Chatz
Investor sentiment about Amazon Inc. (AMZN)
Amazon is currently trading at $7–‘.—‘ per share, up $–….–6 or –.45% on May ––. For the year to date, the stock has appreciated by as much as 5.6…%, which is substantial given the state of global markets in the first quarter. Amazon started the year at $675.89, and hit a low of $48—.…7 on Feb. 9. The stock has a 5—-week trading range of $4–8.‘6 on the low end and $7–9 on the high end. This indicates that investors who bought in at the year low have made substantial gains on the stock. It has a price/earnings ratio of 57….58 and EPS of $–.—5. The one-year target price for Amazon stock is $8…–.95, and the market capitalization based on current prices is $‘‘6.5— billion.
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Warning! GuruFocus has detected 4 Warning Signs with AMZN. Click here to check it out.
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The intrinsic value of AMZN
If we turn our attention to the recommendation summary according to Thompson/First Call, Amazon has a rating for the present week of –.8, on a ratings scale of –.… (strong buy) to 5.… (strong sell). In the first week of May, Amazon was rated at –.9, a clear indication that the stock is increasingly bullish. The high price target for the stock is $–,……… and the low price target is $6—5. The upgrades and downgrades history of Amazon paints an interesting picture in —…–6. The following ratings have been suggested:
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On Jan. 4, Monness Crespi & Hardt downgraded the stock from a buy to a neutral rating.
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On Jan. –5, Susquehanna initiated a positive performance rating for the stock.
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On Feb. –8, Canaccord Genuity upgraded the stock from a hold to a buy.
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On March ——, Raymond James downgraded the stock from a strong buy to an outperform rating.
Analysts highly bullish on Amazon stock
Retail stocks were pummeled on May ––, but one stood head and shoulders above the competition – Amazon. The stock gained –.5% and hit $7–‘.4… on the day. The company’s valuation at this price is astronomical – $‘‘6.5— billion. Analysts across the board are in agreement: Amazon rules the retail roost. The fact of the matter is that as time goes by, traditional retail outlets are seeing an increasing number of sales being lost to e-commerce websites like Amazon – the king of retail in the U.S. A research group found that online retail expenditure will rise in value by $–9… billion between —…–5 and —…—…. And spearheading the online retail initiative is none other than Amazon, with a full 6…% of all growth in the sector. This does not mean that the traditional retail shopping experience is dead and buried; on the contrary there is an appetite for retail shopping because customers will always want the human interactive aspect. There has been a paradigm shift in the retail sector over the past decade from Walmart (WMT) to Amazon, and the trends keep shifting towards online shopping.