Amazon (AMZN, $1,699.63) set to open several new stores
According to a recent report in Wall Street Journal, Amazon is considering opening dozens of grocery stores across the U.S. at a cheaper price point than Whole Foods. The first one is slated to be opened in Los Angeles by the end of 2019. Other stores will be opened in shopping centers based in San Francisco, Seattle, Chicago, Washington, D.C., and Philadelphia.
With this news, existing grocery stores like Walmart (WMT), Kroger (KR), Target (TGT), BJs (BJ), Costco (COST), and Sprouts (SFM) have all taken a hit.
Amazon has already signed two more leases for other grocery locations by early 2020. It’s not yet confirmed whether these stores will be called Amazon markets, but it will definitely be separate from Whole Foods.
The new stores will have a smaller area of 35,000 square feet than a typical grocery of 60,000 square feet of space. Amazon may also take the route of regional grocery chain acquisition, but it’s unclear if it will follow through.
In 2017, Amazon had announced its plans to buy Whole Foods. But this current move will actually offer products at more affordable prices which do not have to compete with the Whole Foods brand directly.
Previously, Amazon has had retail locations like Amazon Go cashier-less convenience stores. This current move marks another shift in the company’s plan to go from the digital to the physical market.
AMZN's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for AMZN turned positive on December 03, 2024. Looking at past instances where AMZN's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 02, 2024. You may want to consider a long position or call options on AMZN as a result. In of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 303 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMZN broke above its upper Bollinger Band on December 04, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.953) is normal, around the industry mean (4.514). P/E Ratio (47.126) is within average values for comparable stocks, (60.217). Projected Growth (PEG Ratio) (1.838) is also within normal values, averaging (2.941). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (3.799) is also within normal values, averaging (5.675).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail