Poor Industry Group Rank Hurts Amazon.com (AMZN) Rating

Amazon.com Inc (NASDAQ:AMZN) is ranked as a Hold using Louis Navellier's Portfolio Grader stock evaluator, which incorporates his investing methodology. This represents no change from the previous week and is the same ranking AMZN has had from Portfolio Grader for 2 months.

With a $481.4 billion market value, the company ranks in the top decile in its industry group, Internet & Direct Marketing Retail, and in the top decile of sector group, Consumer Discretionary, in market value. From the perspective of investment attractiveness, The current Portfolio Grader ranking for AMZN puts it 19 among the 31 companies in this industry group, which is a below-average position; in the third quartile of the sector with a ranking of 307 among the 565 companies in the sector of its Consumer Discretionary sector, and number 2,985 in the nearly 5,000 company Portfolio Grader universe.

The Consumer Discretionary sector is ranked number 11 among the 12 sectors in the Portfolio Grader universe putting it in the bottom quartile of all the GICS sectors. The Internet & Direct Marketing Retail industry group is ranked 42 among the 69 industry groups within the GICS sectors, placing it below-average in terms of the Navellier scoring system.

AMZN has attained above-average scores in 1 of the 8 fundamental areas analyzed by Portfolio Grader and average or below-average scores in 7 of the areas evaluated in the ranking of company stocks.

AMZN's operational scores provide mixed results with a ranking for sales growth that is well above the industry average, while the scores for earnings growth and operating margin are well below average. Scores for visibility of earnings are a source of great concern with a ranking for earnings revisions, earnings surprises and earnings momentum that are much worse than average. AMZN's metrics for return on equity and cash flow are worse than its industry group average. Amazon.com's fundamental scores give AMZN a place in the bottom quartile of the industry group.

The Navellier Proprietary Quantitative Score is used by Portfolio Grader to gauge AMZN's shares from the aspect of risk/reward. This exclusive scoring system evaluates the relative value of the company's shares based on the current price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, AMZN currently scores as average in its industry group compared to its peers.

Louis Navellier's proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.

Commentary provided by UpTick Data Technologies.

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