AMZN
Analysts say Amazon wont shake LTL marketyet
Article Summary
HOLD- Amazon.com Inc. (NASDAQ: AMZN) announced full entry into U.S. less-than-truckload transport with Amazon Supply Chain Services offering in-bound LTL service for all businesses, though analysts see it as a low-margin entry into a relatively small $60 billion market.
- The company's asset-light model at roughly 30 terminals across its package-delivery network primarily moves parcels weighing less than five pounds appears unlikely to challenge traditional incumbents, which specialize in transporting heavy pallets with stringent service requirements, with Deutsche Bank analysts comparing it to what brokers offer.
- Analysts believe Amazon could take some market share on the margins from legacy carriers without driving en-masse share exodus, while using an intermodal container pool likely suggests the offering will primarily compete with the economy (3-4 day) sub-segment of the LTL market, TD Cowen analyst Jason Seidl said.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 14.2% | 25% | 50.0 ptsMeets Minimum (14.2%) - Passes screener |
| EPS Growth Next 5Y ? | 21.6% | 25% | 70.0 ptsGood (21.6%) - Solid outlook |
| Target Price Upside ? | 33.3% | 20% | 85.0 ptsLarge Upside (33.3%) - Target: $317.34 vs Current: $238.00 |
| Gross Margin % ? | 50.6% | 15% | 80.0 ptsVery Healthy (50.6%) - High-quality margins |
| Drawdown from 52-Wk High ? | -14.6% | 15% | 40.0 ptsMild Pullback (-14.6%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About AMZN
- Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally.
- The company operates through three segments: North America, International, and Amazon Web Services (AWS).
- It also manufactures and sells electronic devices, including Kindle, fire tablets, fire TVs, echo, ring, blink, and eero; and develops and produces media content.
- In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content.
- Further, it provides compute, storage, Artificial intelligence, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising.
- Additionally, the company offers Amazon Prime, a membership program.
- The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers.
- It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees.
- The company was incorporated in 1994 and is headquartered in Seattle, Washington.