#2 - Amazon (NASDAQ:AMZN)
It may seem strange to see Amazon (NASDAQ:AMZN) on this list of stocks to buy. The stock was not immune from the selloff that impacted the entire market. However, the stock has rewarded investors who “bought the dip” and is up over 20% for 2020.
Can the stock continue to rise? It sure looks like it. AMZN stock initially took a hit on the expectation that their cloud service business, Amazon Web Services (AWS), would be negatively impacted by the sheltering in place initiatives that are sweeping the nation. However, the company’s core e-commerce business should more than take up the slack. The company has already hired 100,000 new workers to meet increased demand. And the company recently announced plans to add an additional 75,000 workers.
In fact, in an unprecedented move, the company is taking small, almost unnoticeable steps to discourage consumers from buying quite so much online. And in an effort to help manage the influx of orders for grocery delivery, Amazon has also introduced waitlists for both Amazon Fresh and Whole Foods.
The company’s stock is not cheap. But analysts are nonplussed. One reason that Cowen gave Amazon a $2,700 12-month price target is the strength of the company’s earnings growth as well as their margins which just get better and better with Amazon’s unprecedented economies of scale. If the company were to reach the $2,700 mark, it would be a 24% increase from its current level.
About Amazon.com
Amazon.com, Inc engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content.
Read More - Current Price
- $224.19
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 42 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $243.44 (8.6% Upside)
