Looking for the finest stocks to invest in and keep an eye on? Pay attention to companies whose stock prices are on the rise. Amazon (NASDAQ:AMZN) is one stock that meets those criteria. Thursday saw a rise in Amazon stock’s Relative Strength (RS) Rating, from the previous day’s 73 to the current 83.
The improved ranking is encouraging news for the internet giant. Stocks with an RS Rating of 80 or above at the outset of a price movement have a far better probability of continuing that price movement upwards.
After the recession struck and people were forced to remain at home, Amazon saw a massive increase in sales, income, and stock price. Sales and profit growth have slowed as the pandemic’s effects begin to abate. Is this the end of the Amazon party, or is the stock about to take off again?
Reviews of Amazon Stock Are Mixed
The data for the other important metrics are inconsistent. Mutual funds, exchange-traded funds, and other large investors continue to show interest in the stock. Amazon has an Accumulation/Distribution Grade of B+. An optimistic indicator of investor interest is the B+ grade. However, with losses in the last two quarters, Amazon has a dismal 52 EPS Rating. There was a considerable improvement in the loss from the previous quarter to the current one.
Similar to the EPS Rating, the Composite Rating of 69 for Amazon stock indicates that the company may need some improvement due to the recent slowdown in sales and profit growth.
The Composite Rating is a convenient summary of five individual unique IBD ratings based on important fundamental and technical characteristics. Stocks with a Composite Rating of 90 or above are among the greatest for long-term growth.
In Thursday’s trading, Amazon (NASDAQ:AMZN) shares dropped 1.4%, closing at $140.63. However, from its low of 101.26 on May 24, it has risen by 38.26%. It broke over its 50-day line late last month and kept going up. The 200-day mark is almost approaching. There is currently no purchase recommendation on Amazon.com. Track the stock’s progress in forming a base, which might signal the start of a new price trend.
Profits are Down, but Sales Keep Rising
Following a 76-cent EPS increase in the same period a year ago, Amazon (NASDAQ:AMZN) posted a loss of 20 cents per share in the most recent quarter. The company’s latest quarterly sales of $121.2 billion were up 7% year-over-year. Revenue at the internet shipping giant has continued to rise this past year, but at a slower pace than in previous years.
Amazon (NASDAQ:AMZN) stock is trading at the third-highest level compared to other companies in the Retail-Internet sector. The diversified venture capital firm Live Ventures (LIVE) and the South American e-commerce behemoth MercadoLibre (MELI) are also among the top stocks in this category.
Relative price strength helps identify good equities to purchase and track.
Investor’s Business Daily’s proprietary Relative Strength Rating quantifies leadership in the market, ranging from 1 (worst) to 99 (best). We use this score to compare a stock’s performance over the last 52 weeks to all the other equities in our database.
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Author Shariq Khan 
