Despite Amazon’s lofty valuation, analysts remain upbeat
Of the 46 analysts covering Amazon (AMZN), 41 have given it “buy” recommendations, none have given it “sell” recommendations, and five have given it “hold” recommendations. The analyst stock price target for Amazon is $880.06 with a median target estimate of $875.00. Amazon is trading at a discount of nearly 10.4% to its median target.
Considering Amazon’s impressive quarterly results, strategic initiatives to drive Prime membership growth, strong fundamentals, healthy guidance, and the staggering growth of Amazon Web Services, analysts expect Amazon’s earnings to rise at an average annual rate of 35% over the next five years.
On September 8, Amazon’s last trading price was $784.06. The company’s stock was trading 2.3% above its 20-day moving average of $766.23, 4.6% above its 50-day moving average of $749.86, and 9.1% above its 100-day moving average of $718.77.
MACD and RSI
The MACD (moving average convergence divergence) is the difference between a company’s short-term and long-term moving averages. Amazon’s 14-day MACD of 5.6 shows an upward trading trend, as the figure is positive.
Amazon’s 14-day relative strength index (or RSI) is 62, which shows that the stock is somewhat overbought. An RSI figure of above 70 indicates that a stock has been overbought. An RSI figure of below 30 suggests that a stock has been oversold.