Why NASDAQ:AMZN Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Jan 20, 2025

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.

Assessing Growth Metrics for NASDAQ:AMZN

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:AMZN scores a 8 out of 10:

AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.21%, 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.
The Revenue has grown by 11.93% 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 30.16% yearly.
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

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 6.18. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
AMZN's Altman-Z score of 6.18 is amongst the best of the industry. AMZN outperforms 83.87% of its industry peers.
AMZN has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
The Debt to FCF ratio of AMZN (1.84) is better than 70.97% of its industry peers.
AMZN has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.

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:

With an excellent Return On Assets value of 8.53%, AMZN belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
With a decent Return On Equity value of 19.24%, AMZN is doing good in the industry, outperforming 67.74% of the companies in the same industry.
AMZN has a Return On Invested Capital of 11.60%. This is in the better half of the industry: AMZN outperforms 74.19% of its industry peers.
The 3 year average ROIC (6.30%) for AMZN is below the current ROIC(11.60%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 8.04%, AMZN is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
In the last couple of years the Profit Margin of AMZN has grown nicely.
AMZN's Operating Margin of 9.77% is fine compared to the rest of the industry. AMZN outperforms 74.19% of its industry peers.
In the last couple of years the Operating Margin of AMZN has grown nicely.
AMZN has a Gross Margin of 48.41%. This is in the better half of the industry: AMZN outperforms 67.74% of its industry peers.
AMZN's Gross Margin has improved in the last couple of years.

How does the Setup look 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. There is a support zone below the current price at 222.78, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Keep in mind

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.