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Amazon (AMZN) Witnesses Solid Cashierless Technology Momentum

Amazon AMZN continues to enjoy solid momentum with its cashierless technology by delivering an enhanced shopping experience to customers.

This is evident from its huge success with palm scanner payment technology called Amazon One.

Amazon One allows customers to pay for in-store purchases by scanning their palms, delivering a fully contactless payment experience. Reportedly, the technology is available at 200 establishments.

Recently, the company struck a deal with Panera Bread, a cafe chain based in the United States. As of now, Amazon One has been deployed at two greater St. Louis locations of the cafe.

Eventually, it will be deployed across 10-20 Panera cafes.

Expanding Cashierless Technology

The latest deal bodes well for the company’s strengthening efforts toward bolstering the deployment of its cashierless technology.

With the underlined technology, the company helps customers save time by avoiding checkout queues and paying for items shopped via their smartphones from anywhere.

Apart from the Panera deal, it introduced its Just Walk Out technology in a Major League Baseball stadium at Minute Maid Park last year.

The company introduced Amazon One at more than 65 Whole Foods stores in California.

The introduction of Just Walk Out technology in the Amazon Fresh grocery store remains noteworthy. The technology is currently available in many Amazon Fresh stores in the United States and the U.K.

The strong network of Amazon Go stores, wherein the underlined technology was first introduced, remains a positive.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Bottom Line

We believe that the growing endeavors to expand cashierless technology will continue to aid Amazon’s retail prospects.

These efforts will help the company bolster its physical presence in the retail industry.

Apart from this, the underlined technology is expected to drive Amazon’s momentum among the third-party merchants.

All these are expected to bolster the company’s presence in the promising self-checkout systems market.

Per a report from Grand View Research, the self-checkout systems market in the United States is expected to witness a CAGR of 13.4% between 2023 and 2030.

According to a report from Global Market Insights, the market is likely to see a CAGR of 15% between 2022 and 2030. The report suggests that the U.K. market for the same is expected to witness a CAGR of 10% in the same time frame.

We believe that Amazon’s strong prospects in this booming market will aid it in winning investors’ confidence in the near term.

Coming to the price performance, AMZN has lost 40.1% over a year compared with the industry’s decline of 33.4%.

Zacks Rank & Stock to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the retail-wholesale sector are American Eagle Outfitters AEO, AutoNation AN and Booking Holdings BKNG. All three companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Eagle Outfitters' shares have lost 26.8% in the past year. The long-term earnings growth rate for AEO is projected at 12.59%.

AutoNation's shares have gained 11.4% in the past year. AN’s long-term earnings growth rate is projected at 3.54%.

Booking Holdings' shares have gained 13.1% in the past year. The long-term earnings growth rate for BKNG is projected at 16.67%.

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