Amazon is the best-performing stock in the Dow Jones, showing potential for long-term growth

From Barchart: 2024-07-06 06:35:00

Amazon (NASDAQ: AMZN) has joined the Dow Jones Industrial Average as the best-performing stock in the index. The company’s success is credited to Amazon Web Services (AWS), which dominates the cloud infrastructure market with a 50.1% market share and impressive growth in revenue and operating income over the past five years. While Amazon’s price-to-sales ratio is at historical highs, the company’s improved operating income and margins make it a solid buy for investors looking for long-term growth potential.

Despite its stellar performance, Amazon’s stock price reflects a high valuation due to its popularity in the market. The company’s trajectory and potential for consistent profitability make it a decent investment option, although growth must continue to justify its valuation. While Amazon is not as undervalued as it was in the past, patient investors may still benefit from its earnings compounding in the long term.

The Motley Fool Stock Advisor analyst team has identified 10 stocks with high potential for investors in the coming years, with Amazon not making the list. Investors looking for significant returns may explore the recommendations provided by Stock Advisor, which has outperformed the S&P 500 since 2002. Consider investing in other potentially lucrative stocks to diversify your portfolio and maximize returns in the market.



Read more at Barchart: Amazon Is Now the Best-Performing Stock in the Dow Jones Industrial Average In 2024. Is It a Buy Around Its All-Time High?