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

Exploring Growth Potential: AMAZON.COM INC (NASDAQ:AMZN) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and AMAZON.COM INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected AMAZON.COM INC on our screen for growth with base formation, suggesting it merits a closer look.

Growth Examination for NASDAQ:AMZN

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:AMZN has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 308.79% over the past year.
• 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 12.54% 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.
• AMZN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.67% yearly.
• Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 10.91% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Analysis for 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 5.50 indicates that AMZN is not in any danger for bankruptcy at the moment.
• AMZN's Altman-Z score of 5.50 is fine compared to the rest of the industry. AMZN outperforms 78.79% of its industry peers.
• AMZN has a debt to FCF ratio of 1.81. This is a very positive value and a sign of high solvency as it would only need 1.81 years to pay back of all of its debts.
• AMZN has a better Debt to FCF ratio (1.81) than 69.70% of its industry peers.
• A Debt/Equity ratio of 0.34 indicates that AMZN is not too dependend on debt financing.

Profitability Examination for NASDAQ:AMZN

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:AMZN, the assigned 7 is noteworthy for profitability:

• AMZN's Return On Assets of 7.10% is fine compared to the rest of the industry. AMZN outperforms 72.73% of its industry peers.
• AMZN has a better Return On Equity (17.39%) than 72.73% of its industry peers.
• AMZN has a better Return On Invested Capital (10.16%) than 75.76% of its industry peers.
• The 3 year average ROIC (6.24%) for AMZN is below the current ROIC(10.16%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 6.38%, AMZN is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
• AMZN's Profit Margin has improved in the last couple of years.
• AMZN's Operating Margin of 8.02% is fine compared to the rest of the industry. AMZN outperforms 69.70% of its industry peers.
• AMZN's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 47.59%, 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 also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:AMZN currently has a 8 as setup rating:

Besides having an excellent technical rating, AMZN also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 188.77. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 181.66, 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.

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

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

Disclaimer

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.