Analyze a Stock: amazon - Essay Example

AMAZON STOCK ANALYSIS Company overview Amazon.com, Inc. is an online retail company that operates in North America and globally. The company operates retail Web sites that include amazon.ca and amazon.com. its websites mainly focuses on price, selection, and convenience. Amazon.com, Inc. also offers programs that enable sellers not only to sell their products on its website but also own branded websites. Additionally, Amazon.com, Inc. serves developer customers through Amazon Web Services to enable virtually various type of business.

Stock analysisThe average open price stands at $372.37 while average closing price stands at 359.34. During this period, the stock price range is 363.90-372.728 with an average market capitalization of 171.0B. The period’s high was 408.06 while a period’s low of 245.75. The stocks volume during this period averages 3.86m with an EPS of 0.59. According to the data, the Beta stands at 0.864 with a P/E standing at 631.14. For the last 4 years, the company’s real investment has yielded an average return of 37%, handily beating the S&P 500 by 14% points. Amazon.com Inc.

reported significant earnings per share improvement during this period. However, it is worth noting that the historical return on a given investment progressively diminishes as the P/E multiple expands beyond 20. According to the data, Amazon.com, Inc. stock has realized a steady growth. In addition, the stock has been performing explicitly well in the big stock markets. This stability is a good investment indication hence be assured that Amazon.com, Inc. will receive more investors in the coming days.

TrendsEPS TRENDSCurrent Qtr.Mar 14Next Qtr.Jun 14Current YearDec 14Next YearDec 15Current Estimate0.230.231.914.237 Days Ago0.230.231.914.2330 Days Ago0.240.232.014.2760 Days Ago0.540.432.645.3390 Days Ago0.540.432.685.41CURRENT TARGET PRICEHigh Target Price Estimate500.00Low Target Price Estimate325.00Mean Target Price Estimate424.72Standard Deviation46.07Date of Most Recent Estimate02/25/14RECOMMENDATION TRENDSCurrent MonthLast MonthTwo Months AgoThree Months AgoStrong Buy15141413Buy19201920Hold10101010Underperform0000Sell0000GROWTH ESTIMATEGrowth EstAMZNIndustrySectorS&P 500Current Qtr.27.80%13.50%339.10%12.

60%Next Qtr.1,250.00%46.40%-17.90%15.00%This Year223.70%16.50%35.10%7.90%Next Year121.50%21.00%10.00%12.60%Past 5 Years (per annum)-16.47%N/AN/AN/ANext 5 Years (per annum)45.04%12.96%15.68%9.77%Price/Earnings (avg. for comparison categories)188.379.3715.4717.83PEG Ratio (avg. for comparison categories)4.181.00-3.571.86REVENUE ESTIMATERevenue EstCurrent Qtr.Mar 14Next Qtr.Jun 14Current YearDec 14Next YearDec 15Avg. Estimate19.42B19.01B89.90B107.52BNo. of Analysts38384338Low Estimate19.03B18.48B87.86B102.75BHigh Estimate19.93B19.61B92.97B117.02BYear Ago Sales16.07B15.70B74.45B89.90BSales Growth (year/est)20.80%21.10%20.80%19.60%Work citedRobert D.

Edwards, John Magee, W.H.C. Bassetti. Technical Analysis of Stock Trends, Tenth Edition. New York: CRC Press, 2013.