Amazon.com, Inc. ($AMZN) Cautious Buy or Hold to $2020 Confident Investor Rating: Fair

 

Company name Amazon.com, Inc.
Stock ticker AMZN
Live stock price [stckqut]AMZN[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $2837.24
Target stock price (averages with growth) $2837.24
Target stock price (averages with no growth) $2837.24
Target stock price (manual assumptions) $2851.69

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/amzn

Amazon.com, Inc., incorporated on May 28, 1996, offers a range of products and services through its Websites. The Company operates through three segments: North America, International and Amazon Web Services (AWS). The Company's products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices. The Company, through its subsidiary, Whole Foods Market, Inc., offers healthy and organic food and staples across its stores. The Company also offers a range of products like whole trade bananas, organic avocados, organic large brown eggs, organic responsibly-farmed salmon and tilapia, organic baby kale and baby lettuce, animal-welfare-rated 85% lean ground beef, creamy and crunchy almond butter, organic gala and fuji apples, organic rotisserie chicken.

The Company's Whole Foods Market healthy and private label products include 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now. The Company also offers Amazon Lockers that is available in select Whole Foods Market stores. Customers can have products shipped from www.Amazon.com to their local Whole Foods Market store for pick up or send returns back to Amazon during a trip to the store.

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Amazon.com, Inc. as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Amazon.com, Inc. calculated?

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I hope that this makes you a Confident Investor.

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