Amazon.com Inc (NASDAQ:AMZN) Combines Strong Fundamentals with Bullish Technical Setup for Growth Investors

Combining technical and fundamental analysis gives investors a wide-ranging method for finding promising chances in the equity markets. One such strategy involves screening for stocks that not only show strong basic growth qualities but also present good technical patterns hinting at possible price breakouts. This two-part method helps sort for companies with solid business health and earnings while choosing entry points based on price momentum and chart formation, seeking to get both quality and momentum in a single investment idea.

AMAZON.COM INC (NASDAQ:AMZN) appears as a noteworthy candidate under this strategy, as recent study shows it meets several rules for growth investing while showing a positive technical picture. The e-commerce and cloud computing leader has long been seen as a growth anchor, and current information supports its position as a company with major growth ability, likely to do better than others in its sector.

Fundamental Strength Backs Growth Path

A close look at the fundamental analysis report shows why Amazon fits as a solid growth stock. The company has a growth rating of 7 out of 10, supported by notable past and forecast performance numbers:

• Earnings per share grew by 56.94% over the past year, with a yearly growth rate of 36.89% over several years.
• Revenue rose by 10.87% in the most recent year, keeping a good compound annual growth rate of 17.86%.
• Future projections point to continued firmness, with EPS predicted to grow by 19.69% each year and revenue by 10.18%.

These numbers are important because lasting growth in earnings and sales is a foundation of growth investing, as noted in the summary of growth stock rules. Companies that keep growing their revenue and profits are in a better place to provide shareholder gains through price gains.

Earnings ability is another area where Amazon does very well, scoring 8 out of 10. Main strong points include:

• A return on equity of 21.16%, doing better than 82.14% of others in the industry.
• A profit margin of 10.54%, putting it in the top group of the broadline retail sector.
• Getting better operating and gross margins over recent times, showing efficient scaling and cost control.

Financial soundness, though scoring a middle 6, shows stability strong points with a good Altman-Z score of 5.99 and a workable debt-to-equity ratio of 0.15. While cash ratios are lower than some others, the company’s firm cash flow creation and market standing ease worries. Valuation stays high with a P/E ratio of 34.91, which is common for growth stocks where investors pay more for future earnings possibility. This is reasonable due to high predicted growth rates and exceptional earnings ability.

Technical Picture Shows Momentum Breakout

On the technical side, the technical analysis report gives Amazon a full rating of 10, along with a setup rating of 8. The stock is in a positive pattern both near-term and long-term, trading close to the top of its 52-week range. Important technical notes include:

• The price is moving within a recent area of $211.42 to $234.08, showing firmness by trading near the area high.
• A barrier zone is found between $232.93 and $237.69; a move above this point might show continued upward momentum.
• Several support points are noted below, including a firm zone around $228.05, giving a possible stop-loss guide for risk control.
• High average daily volume of almost 43 million shares provides liquidity, which is needed for easy entry and exit.

This technical state is significant because breakout formations often come before major price moves, letting investors benefit from momentum while the basic story stays true. The mix of a firm pattern, consolidation near a barrier, and good volume support matches the strategy of entering growth stocks at technically good times.

Why These Rules Are Important

This method, joining fundamental growth traits with technical timing, is made to find stocks that are not only financially stable and growing quickly but also set for near-term price gains. Growth investing needs trust in a company’s future outlook, while technical analysis helps improve entry points to better risk-adjusted returns. Amazon shows this combination: its fundamental numbers support its status as a growth frontrunner, and its chart formation hints the market might be close to seeing this possibility through higher prices.

For investors wanting to look into similar chances, more outcomes from the "Strong Growth Stocks with Good Technical Setup Ratings" screen can be seen here. This preset screen sorts for companies showing solid growth, acceptable earnings and soundness, and positive technical setups, providing an organized way to find possible investments.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. The analysis is based on publicly available data and should not be interpreted as a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.