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The Zacks Analyst Blog Highlights: Amazon, TripAdvisor, Adobe and Stamps.com

For Immediate Release

Chicago, IL –December 5, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Amazon AMZN, TripAdvisor TRIP, Adobe Systems ADBE and Stamps.com STMP.

Here are highlights from Tuesday’s Analyst Blog:

Amazon Benefits from Strengthening Delivery Services, Prime

Amazon is gaining further momentum in the online retail space with the aid of its strong Prime program. Moreover, its distribution strength, expanding seller base and product offerings are aiding its dominant position in this particular space.

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The company’s continued focus toward enhancement of its delivery services along with Prime benefits is acting as a tailwind. This robust combination is bolstering the number of items ordered and shipped.

The e-commerce giant has revealed that Prime members worldwide have ordered more than 2 billion items throughout 2018 so far by utilizing the power of its one-day or faster delivery services.

This number is testimony to the company’s success in achieving its aim of delivering better shopping experience to customers with fast delivery service.

Coming to price performance, shares of Amazon have returned 51.5% on a year-to-date basis, outperforming the industry’s rally of 9.3%.

Amazon’s Aggressive Stance

The above-mentioned point marks a huge achievement for an online retailer like Amazon as growing product orders will continue to aid its business growth.

The rapid expansion of Amazon’s one-day, same-day and two-hour delivery services this year has been instrumental in its success. Reportedly, the company’s one-day and same-day services are available in almost 8,000 cities. Further, two-hour delivery service now caters to more than 30 cities.

Moreover, the company’s strengthening grocery services via Whole Foods Store is a major positive. The grocery delivery and pick up services from Whole Foods are available in 60 cities and 22 cities, respectively.

Additionally, growing momentum of Prime in the international market is also aiding the company in serving its international customers well.

In the last reported quarter, Amazon rolled out monthly Prime membership plan in Canada and Mexico, and monthly Prime Student membership in Germany. Further, it introduced quarterly Prime membership in China. The company’s Prime launch in Australia this year was also a significant step. Currently, the service is available in 17 countries.

All these strong endeavors are likely to continue benefiting Amazon in rapidly penetrating the global retail industry which as per a report from Mordor Intelligence, is expected to witness a CAGR of 5.3% between 2018 and 2023 and to reach $31.9 trillion by 2023.

Prime: A Key Catalyst

The company’s growing shipment and items ordered by the Prime members highlight its ability of providing strong benefits to the customers via Prime while shopping.

We believe the solid loyalty system in Prime, Amazon’s FBA strategy and expanding content portfolio will continue to boost Prime subscriber base. Per TechCrunch, Amazon has witnessed more adoption of Prime compared with last year.

Further, the company’s growing initiatives toward enriching its video portfolio with regional and award winning content remains a tailwind.  Amazon’s offering of free video games via Twitch Prime is also aiding growth.

Zacks Rank and Stocks to Consider

Amazon currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader technology sector are TripAdvisor, Adobe Systems and Stamps.com. While TripAdvisor sports a Zacks Rank #1 (Strong Buy), Adobe Systems and Stamps.com carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for TripAdvisor, Adobe Systems and Stamps.com is pegged at 14.05%, 16.4% and 15%, respectively.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Stamps.com Inc. (STMP) : Free Stock Analysis Report
 
TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
 
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
 
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