NASDAQ:AMZN—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

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.

Growth Analysis for NASDAQ:AMZN

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:AMZN boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 117.21% 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 11.93% in the last year.
• The Revenue has been growing by 19.80% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 30.16% on average over the next years. This is a very strong growth
• Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 10.51% 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.

Understanding NASDAQ:AMZN's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:AMZN was assigned a score of 5 for health:

• An Altman-Z score of 6.14 indicates that AMZN is not in any danger for bankruptcy at the moment.
• AMZN has a better Altman-Z score (6.14) than 84.38% of its industry peers.
• The Debt to FCF ratio of AMZN is 1.84, which is an excellent value as it means it would take AMZN, only 1.84 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 1.84, AMZN is doing good in the industry, outperforming 71.88% of the companies in the same industry.
• A Debt/Equity ratio of 0.28 indicates that AMZN is not too dependend on debt financing.

A Closer Look at Profitability 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:

• Looking at the Return On Assets, with a value of 8.53%, AMZN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• The Return On Equity of AMZN (19.24%) is better than 65.63% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 11.60%, AMZN is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
• The last Return On Invested Capital (11.60%) for AMZN is above the 3 year average (6.30%), which is a sign of increasing profitability.
• The Profit Margin of AMZN (8.04%) is better than 78.13% of its industry peers.
• In the last couple of years the Profit Margin of AMZN has grown nicely.
• Looking at the Operating Margin, with a value of 9.77%, AMZN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• In the last couple of years the Operating Margin of AMZN has grown nicely.
• With a decent Gross Margin value of 48.41%, AMZN is doing good in the industry, outperforming 68.75% 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 also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:AMZN scores a 7 out of 10:

Besides having an excellent technical rating, AMZN also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price.

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.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.