The Chaikin Power Gauge RatingTM for this AMZN stock report is very bearish due to very poor financial metrics, very negative expert opinions and weak earnings performance. AMZN’s financial metrics are very poor due to a high price to book value ratio and relatively low cash flow.
Financial Metrics – Very Bearish
AMZN’s financial metrics are very poor. The company may be overvalued and generates relatively low free cash flow relative to market capitalization. The rank is based on a low long term debt to equity ratio, high price to book value ratio and relatively low cash flow.
Earnings Performance Rating- Bearish
AMZN’s earnings performance has been weak. The company has not met analysts’ earnings estimates and experienced relatively poor earnings growth in the past 12 months. The rank is based on high earnings growth over the past 3-5 years, worse than expected earnings in recent quarters, a relatively poor trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity – Neutral
Price and volume activity for AMZN is neutral. AMZN is in an accelerating price trend compared to 4 months ago and has a declining price trend. The rank for AMZN is based on a negative Chaikin price trend, a positive Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Very Bearish
Expert opinions about AMZN are very negative. Analysts are lowering their EPS estimates for AMZN and AMZN has been under-performing the Nonfood Retail-Wholesale industry over the past 13 weeks. The rank for AMZN is based on analysts revising earnings estimates downward, a low short interest ratio, insiders not purchasing significant amounts of stock, optimistic Analyst opinions and relative weakness of the stock versus the Nonfood Retail-Wholesale industry group.