by winston » Thu Sep 30, 2021 4:34 pm
not vested
Undervalued Stocks to Buy: Amazon (AMZN)
Despite reporting successive quarters of blockbuster earnings, Amazon stock has largely traded sideways in 2021.
Year to date, AMZN stock is up 2%. Compared to its 69% gain in 2020, the company’s share price has been anemic through nine months of this year.
The lackluster performance runs counter to Amazon continuing to put up massive earnings that beat the expectations of Wall Street.
What gives? A new chief executive officer in Andy Jassy (the first CEO changeover in the company’s history) coupled with a growing number of antitrust probes has weighed on the stock.
Investors also seem to be taking a wait-and-see approach to Amazon as the global economy reopens and people are expected to spend less time shopping online. However, at current levels, AMZN stock is not only underperforming, it looks undervalued.
The median price target of more than 40 analysts who cover the online retailer calls for the share price to rise 20% to $4,105. That seems a long way off the current share price of just over $3,400.
Some analysts say it will take a big catalyst to get the stock moving again, such as an announcement that the shares will be split.
We shall see, but, in the meantime, Amazon stock is on sale.
Source: Investor Place
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