Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Amazon.com as such a stock due to the following factors:
- AMZN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.1 billion.
- AMZN has traded 2.6 million shares today.
- AMZN is trading at a new lifetime high.
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More details on AMZN:
Amazon.com, Inc. operates as an online retailer in North America and internationally. The company operates in two segments, North America and International. AMZN has a PE ratio of 1329.7. Currently there are 24 analysts that rate Amazon.com a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Amazon.com has been 2.7 million shares per day over the past 30 days. Amazon.com has a market cap of $170.4 billion and is part of the services sector and retail industry. The stock has a beta of 0.60 and a short float of 1.9% with 2.17 days to cover. Shares are up 48.4% year to date as of the close of trading on Monday.
rates Amazon.com as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.6%. Since the same quarter one year prior, revenues rose by 23.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $1,389.00 million or 47.29% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 36.47%.
- Powered by its strong earnings growth of 85.00% and other important driving factors, this stock has surged by 57.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 85.0% when compared to the same quarter one year prior, rising from -$274.00 million to -$41.00 million.
- The gross profit margin for AMAZON.COM INC is currently lower than what is desirable, coming in at 32.53%. Regardless of AMZN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.23% trails the industry average.
- You can view the full Amazon.com Ratings Report.