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 Amazon.com ( AMZN) as a pre-market leader 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 traded 42,821 shares today in the pre-market hours as of 8:26 AM.
- AMZN is up 2.1% today from Friday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AMZN with the Ticky from Trade-Ideas. See the FREE profile for AMZN NOW at Trade-Ideas 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 630.8. Currently there are 23 analysts that rate Amazon.com a buy, no analysts rate it a sell, and 7 rate it a hold. The average volume for Amazon.com has been 3.6 million shares per day over the past 30 days. Amazon.com has a market cap of $170.9 billion and is part of the services sector and retail industry. The stock has a beta of 0.77 and a short float of 1.8% with 2.35 days to cover. Shares are down 6.7% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Amazon.com as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 20.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- AMAZON.COM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMAZON.COM INC turned its bottom line around by earning $0.58 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $0.58).
- The gross profit margin for AMAZON.COM INC is currently lower than what is desirable, coming in at 30.26%. 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 0.93% trails the industry average.
- AMZN's debt-to-equity ratio of 0.71 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that AMZN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.67 is low and demonstrates weak liquidity.
- You can view the full Amazon.com Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.