Of the 46 analysts covering Amazon.com (AMZN), 41 have issued “buy” recommendations, while five have issued “hold” recommendations, and none has issued a “sell.” The analyst stock price target for Amazon is $880.66, with a median target estimate of $875.00, which means that Amazon is trading at a discount of nearly 12.9% to its median target.
Given Amazon’s impressive run in 2016, the company’s strategic initiatives to drive Prime membership growth—in addition to its strong fundamentals, healthy guidance, and the staggering growth of Amazon Web Services—analysts expect the company’s earnings to rise at an average annual rate of 35% over the next five years.
On August 23, Amazon’s last trading price was $762.45. The company’s stock was trading on par with its 20-day moving average. It was trading 2.8% above its 50-day moving average of $741.53 and 8.1% above its 100-day moving average of $705.22.
MACD and RSI
A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. Amazon’s 14-day MACD of 8.05 shows an upward trading trend, as the figure is positive.
Amazon’s 14-day RSI (relative strength index) is 56, which shows that the stock is neither overbought nor oversold. Remember, an RSI figure of above 70 indicates that a stock has been overbought, whereas RSI figure of below 30 suggests that a stock has been oversold.
In the next and final part, we’ll take a quick look at JD.com.