NASDAQ:AMZN—A High-Growth Stock Gearing Up for Its Next Upward Move.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether AMAZON.COM INC (NASDAQ:AMZN) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but AMAZON.COM INC has surfaced on our radar for growth with base formation, warranting further examination.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:AMZN has earned a 8 for growth:

• AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 199.28%, which is quite impressive.
• The Earnings Per Share has been growing by 23.57% on average over the past years. This is a very strong growth
• The Revenue has grown by 11.83% in the past year. This is quite good.
• AMZN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.80% yearly.
• Based on estimates for the next years, AMZN will show a very strong growth in Earnings Per Share. The EPS will grow by 26.10% on average per year.
• Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 11.49% on average per year.

Health Assessment of NASDAQ:AMZN

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:AMZN scores a 5 out of 10:

• An Altman-Z score of 5.04 indicates that AMZN is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.04, AMZN belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
• The Debt to FCF ratio of AMZN is 2.60, which is a good value as it means it would take AMZN, 2.60 years of fcf income to pay off all of its debts.
• AMZN has a Debt to FCF ratio of 2.60. This is in the better half of the industry: AMZN outperforms 69.70% of its industry peers.
• A Debt/Equity ratio of 0.37 indicates that AMZN is not too dependend on debt financing.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:AMZN has earned a 7 out of 10:

• Looking at the Return On Assets, with a value of 5.76%, AMZN is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
• The Return On Equity of AMZN (15.07%) is better than 72.73% of its industry peers.
• The Return On Invested Capital of AMZN (8.23%) is better than 72.73% of its industry peers.
• The 3 year average ROIC (6.24%) for AMZN is below the current ROIC(8.23%), indicating increased profibility in the last year.
• The Profit Margin of AMZN (5.29%) is better than 69.70% of its industry peers.
• In the last couple of years the Profit Margin of AMZN has grown nicely.
• AMZN has a Operating Margin of 6.41%. This is in the better half of the industry: AMZN outperforms 69.70% of its industry peers.
• AMZN's Operating Margin has improved in the last couple of years.
• AMZN has a Gross Margin of 46.98%. This is in the better half of the industry: AMZN outperforms 63.64% of its industry peers.
• In the last couple of years the Gross Margin of AMZN has grown nicely.

How does the Setup look for NASDAQ:AMZN

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:AMZN is 8:

AMZN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 178.23. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 174.39, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of AMZN contains the most current fundamental analsysis.

Check the latest full technical report of AMZN for a complete technical analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.