Exploring the Growth Potential of NASDAQ:AMZN as It Nears a Breakout.

Last update: Jun 20, 2024

In this article we will dive into AMAZON.COM INC (NASDAQ:AMZN) as a possible candidate for growth investing. Investors should always do their own research, but we noticed AMAZON.COM INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:AMZN has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 292.31% over the past year.
AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.57% yearly.
Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 12.54% in the last year.
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 30.67% 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 10.91% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Assessing Health Metrics 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:

AMZN has an Altman-Z score of 5.39. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.39, AMZN belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
The Debt to FCF ratio of AMZN is 1.81, which is an excellent value as it means it would take AMZN, only 1.81 years of fcf income to pay off all of its debts.
AMZN's Debt to FCF ratio of 1.81 is fine compared to the rest of the industry. AMZN outperforms 65.63% of its industry peers.
AMZN has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.

Profitability Analysis 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:

The Return On Assets of AMZN (7.10%) is better than 71.88% of its industry peers.
The Return On Equity of AMZN (17.39%) is better than 71.88% of its industry peers.
AMZN has a better Return On Invested Capital (10.16%) than 75.00% 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.
AMZN has a better Profit Margin (6.38%) than 71.88% of its industry peers.
In the last couple of years the Profit Margin of AMZN has grown nicely.
AMZN has a better Operating Margin (8.02%) than 68.75% of its industry peers.
AMZN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 47.59%, AMZN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
AMZN's Gross Margin has improved in the last couple of years.

How does the Setup look for NASDAQ:AMZN

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:AMZN is 7:

Besides having an excellent technical rating, AMZN also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 182.59, 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.

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

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.