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.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where AMZN declined for three days, in of 290 cases, the price declined further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for AMZN moved out of overbought territory on April 12, 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 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AMZN as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on April 16, 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 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
AMZN moved below its 50-day moving average on April 24, 2024 date and that indicates a change from an upward trend to a downward trend.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 334 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMZN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 289 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 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 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: AMZN's P/B Ratio (9.099) is slightly higher than the industry average of (3.741). P/E Ratio (60.893) is within average values for comparable stocks, (59.711). Projected Growth (PEG Ratio) (2.201) is also within normal values, averaging (1.927). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (3.224) is also within normal values, averaging (10.261).
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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of on-line retail shopping services
Industry InternetRetail