Amazon.com
AMZN
Delayed Nasdaq - 12/11 10:00:00 pm
1168.92USD
+0.6%

In an accumulation phase

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David Meurisse
Contributor / Partner

Strategy published on : 10/12/2017 | 17:20

long trade
Target price hit

Entry price : 998.82$
Target : 1147$
Stop-loss : 938$
Potential : 14.84%

After several weeks of range-bound movement, shares in Amazon.com could enter into a new clear trend. The exit out of the current trading range could be the signal for a return of volatility.
Summary

● The company has poor fundamentals for a short-term investment strategy.


Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● The company is in a robust financial situation considering its net cash and margin position.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 884.67 USD


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 268.37 times its estimated earnings per share for the ongoing year.

● Analysts covering the stock have recently lowered their earnings forecast.

● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.

● For the past year, analysts have significantly revised downwards their profit estimates.

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