NASDAQ:AMZN: a strong growth stock preparing for the next leg up?.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if AMAZON.COM INC (NASDAQ:AMZN) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted AMAZON.COM INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Looking at the 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.
• AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.57% yearly.
• AMZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.83%.
• 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 Analysis for NASDAQ:AMZN

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:AMZN has received a 5 out of 10:

• AMZN has an Altman-Z score of 5.06. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
• AMZN has a Altman-Z score of 5.06. This is amongst the best in the industry. AMZN outperforms 81.82% of its industry peers.
• AMZN has a debt to FCF ratio of 2.60. This is a good value and a sign of high solvency as AMZN would need 2.60 years to pay back of 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 72.73% of its industry peers.
• AMZN has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.

What does the Profitability looks like for NASDAQ:AMZN

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:

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

How do we evaluate the setup for NASDAQ:AMZN?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:AMZN currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

AMZN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 178.88. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 178.22, a Stop Loss order could be placed below this zone.

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.

For an up to date full technical analysis you can check the technical report of AMZN

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.