Job creation doesn’t come as a surprise from an industry leader like Amazon.com, Inc. (AMZN - Free Report) .
The retail giant, which is one of the world’s fastest growing companies with fingers in almost every pie, recently announced plans of hiring more new positions in U.K. this year.
The company will add 7,000 permanent jobs in U.K. to meet the increasing demand for products amid coronavirus-induced lockdown.
It expects to pay employees a minimum of £9.50 on an hourly basis. In addition, the company plans to recruit 20,000 seasonal posts for the upcoming festive season.
Nowadays, there is an increased demand for delivery of food and on-demand goods at consumers’ doorstep. As consumers turn to digital options as a means to circumvent physical shopping environments, the change in behavior is evident.
The latest move aligns with Amazon’s motto of delivering goods on time.
Growth Expansion Continues
Amazon has been adding employees to U.K. workforce over the past few years.
This year, the company has already added 3,000 permanent jobs herein. These new additions will bring the total U.K. workforce to approximately 40,000 by 2020-end.
All these endeavors make sense as the company continues to open new fulfillment centers across Europe, and invest in logistics, cloud computing as well as machine learning.
Notably, Amazon’s shares have outperformed the industry it belongs to on a 12-month basis. The company’s shares have gained 83% against the industry’s growth of 74.1% in the said period.
We believe investors are encouraged by its international expansion, grocery initiatives and efforts toward Amazon Web Services. The company capitalizes on execution strength, robust performance and technological prowess.
Amazon has been expanding on a global basis in a bid to maintain supremacy. The company is investing more in fulfillment, technology and content. Its focus on automating distribution centers is clearly heating up and investment in robotics should continue to pay off.
The latest step to recruit more personnel clearly demonstrates that Amazon is focused on expanding operations in the country and delivering enhanced services to more customers. Consequently, the company is likely to achieve growth targets going forward.
Although increased expenses could hurt the bottom line in the near term, we believe that these measures are necessary to maintain its dominance in this highly competitive market.
Zacks Rank and Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Dropbox (DBX - Free Report) , Etsy, Inc. (ETSY - Free Report) and Maxim Integrated Products, Inc. (MXIM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate of Dropbox, Etsy and Maxim is pegged at 34.4%, 26.5% and 10%, respectively.
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