Amazon’s (AMZN, $1,742.15) venture into healthcare market is gaining momentum
E-commerce giant Amazon’s foray into the health care market is gaining ground. Amazon now allows customers who buy medicines from them to use their flexible savings account or health savings account, often referred to as HSA or FSA, to get discounts.
These programs allow customers with health insurance to reduce their out-of-pocket expenses by setting aside a portion of their pre-tax income to cover medical expenses like prescription medicines.
The move is intelligent to stay relevant in a market where rivals like Walmart (WMT) already offer pharmacy services and also have a storefront for HSA and FSA products.
In the summer of 2018, Amazon has also acquired an internet pharmacy company, PillPack, gesturing an interest to add prescription medicines in its portfolio. But PillPack, which primarily serves to older customers who take multiple medications, hasn’t been fully integrated with Amazon yet.
Amazon’s current interest in the prescription drugs market will not be without challenges owing to the complex web of intermediaries that sit between the drug manufacturer and the pharmacy. The company will now have to work closely with middlemen, known as pharmacy benefits managers, in order to take a customer’s insurance.
Amazon’s foray into the healthcare market was suspected due to the large segment of customers that pay put-of-pocket for their medical expenses. That’s about 6% of the U.S. population, which is a chunk of the $450 billion pharmacy market. Tapping this segment marks Amazon’s first move into the medicine market.
Momentum Indicator for AMZN turns positive, indicating new upward trend
AMZN saw its Momentum Indicator move above the 0 level on December 24, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 76 similar instances where the indicator turned positive. In of the 76 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where AMZN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 338 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 308 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 10-day RSI Indicator for AMZN moved out of overbought territory on December 18, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on December 19, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 89, 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 (9.217) is normal, around the industry mean (4.875). P/E Ratio (48.515) is within average values for comparable stocks, (60.817). Projected Growth (PEG Ratio) (1.862) is also within normal values, averaging (2.753). Dividend Yield (0.000) settles around the average of (0.028) among similar stocks. P/S Ratio (3.911) is also within normal values, averaging (5.823).
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a provider of on-line retail shopping services
Industry InternetRetail