Amazon.com has been rising lately amid the current market rally attempt. On Wednesday, the Relative Strength (RS) Rating for Amazon stock climbed to 71, of a best possible 99, up from 65 the day before. Amazon rose fractionally Wednesday.
The new 71 RS rating for Amazon stock means the e-commerce giant outperformed 71% of stocks over the past year in terms of price performance. Top-performing stocks tend to have an 80 or better RS Rating in the early stages of moves. Watch for continued improvement for Amazon.com as it rises near that threshold.
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Among recent strategic moves, on Aug. 5 Amazon announced it's buying robot home appliances maker iRobot for $61 per share, or about $1.7 billion. On June 6, Amazon completed a 20-for-1 stock split, making its shares more affordable, a move that could boost share purchases.
Amazon Stock's Other Ratings Mixed
Among its other key ratings, Seattle-based Amazon has a 51 EPS Rating and an unimpressive 55 Composite Rating. However, Amazon impresses fund managers. It has a B Accumulation/Distribution Rating on an A+ to E scale. That means that mutual funds, ETFs and other big money managers are eagerly buying its shares.
Although Amazon took a drubbing this year along with most other stocks amid the early 2022 bear market, it's battled back. It shot up 45% from a May 24 intraday low 101.26 to 146.57 on Aug. 18. It's fallen the past week in sync with overall market consolidation, but traded up about 0.13% Wednesday afternoon. Amazon.com is not currently showing a potential buy point. See if the stock goes on to form a chart pattern such as a cup with handle or three weeks tight that could spark a new run.
Stock Improves, Fundamentals Need Work Though
Among its fundamentals, Amazon.com reported a 20-cents-per-share loss last quarter, though revenue grew 7% to $121.2 billion. Amazon stock crossed above its 50-day line on July 15 and hasn't looked back. It also rose above its 200-day line on Aug. 16, but slid below it amid recent market retrenchment.
Amazon stock earns the No. 5 rank among its peers in the Retail-Internet industry group. Vipshop and Pinduoduo are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database
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