Even as all retailers struggle to generate footfalls by giving away massive discounts on Black Friday, one retailer is offering the mother of all deals – Amazon (AMZN). Binge-shoppers step back, we are talking about the Amazon stock.
Thanks to a tech-sell off that tripped numerous industry giants last week, Amazon is currently trading at a 26% discount from its 52-week-high achieved in September. Meanwhile, note that the stock is historically the best market-beating retailer during Black Fridays, and it is well-positioned it for a recovery run.
Despite a slight increase in short interest in the stock in late October, analysts remain highly optimistic about the stock. Thirty-six out of 37 analysts covering the stock has a BUY rating, with an average 12-month price target at $2164.29, much higher than its 52-week high.
The lowest price target estimate on the stock stands at $1900, which is still at a 25% upside from Wednesday’s close.
Kensho data reveals that the Jeff-Bezos owned e-commerce major has traded positive 81% of the times during the Black Friday weeks since 1990, CNBC reported last week. Amazon is followed by other traditional retailers including Best Buy (BBY), Dollar Tree (DLTR), Nordstrom (JWN) and Michael Kors (KORS).
While the data also reveals that the trading gets tough during the one month after Black Friday, Amazon still outperforms its peers.
Amazon is notorious for pumping most of its money to develop its smaller businesses – which in turn leads to an outlandish PE ratio – and yet, the company reported four of its most profitable quarters this year. It reported CAGR of 45% in the last 10 years with little signs of slowing down.
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The stock has grown 28% in the past one year. So Amazon stock could turn out to be a better purchase than an Echo speaker. Choose wisely.