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Amazon Records Longest Monthly Winning Streak: ETFs to Tap
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Amazon (AMZN - Free Report) has outperformed the broader stock market in August, having gained 3.2%. This represents the sixth straight month of gains and the longest monthly winning streak since July 2011. The e-commerce giant pulled in about $423.7 billion in market cap since the beginning of its winning streak.
History suggests that Amazon’s outperformance could continue in September and would be the longest monthly winning streak in 20 years. Per a Business News article, Amazon has provided an average return of 6.6% for the month of September, its best performance in that month being an astonishing 86% gain in 1997, the first year it was listed on the stock market. A total of 58% of September has been positive for the stock.
Investors seeking to tap the bullish trend could consider ETFs having a substantial allocation to this online behemoth. These include ProShares Online Retail ETF (ONLN - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) .
Strong Trends
The surge was propelled by Amazon's recent partnership announcement with Shopify (SHOP). The collaboration will see Amazon's Buy With Prime app integrating with Shopify, streamlining the process for sellers to link the Amazon-centric payment feature with their Shopify outlets.
Since its comprehensive launch in January, the Buy with Prime program has seen robust adoption. "Amazon revealed in January a 25% uptick in conversions on merchant sites, based on data from the initial Buy With Prime rollout in April 2022,” noted RBC's Brad Erickson on Aug 31.
In August, Amazon smashed market expectations in a big way. It reported the biggest profit beat in 10 quarters and returned to double-digit revenue growth. The e-commerce giant also provided an optimistic outlook (read: 5 ETFs to Profit from Amazon's Q2 Earnings Beat).
Bulls Are Here!
Wall Street is also bullish on the stock. Amazon currently has an average brokerage recommendation (ABR) of 1.14 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 39 brokerage firms. The current ABR compares to an ABR of 1.14 a month ago based on 39 recommendations.
Of the 39 recommendations deriving the current ABR, 34 are Strong Buy and four are Buy. Strong Buy and Buy account for 87.18% and 10.26% of all recommendations, respectively. A month ago, Strong Buy made up 87.18%, while Buy represented 10.26%.
Based on short-term price targets offered by 39 analysts, the average price target for Amazon comes to $166.85. The forecasts range from a low of $115.00 to a high of $230.00.
Solid Earnings Estimate Revisions
Amazon saw solid earnings estimate revision of 68 cents over the past month for this year, with an estimated earnings growth of 214.1%. This compares favorably with the industry’s growth projection of 44.53%.
AMZN has a Zacks Rank #1 (Strong Buy) and a top Growth Score of A. The stock falls under a top-ranked Zacks industry (top 30%).
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 20 stocks in its basket. Amazon is the top firm, accounting for 23.7% of the portfolio.
ProShares Online Retail ETF has amassed $100.5 million in its asset base and currently trades in a moderate volume of around 18,000 shares a day on average. It charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 297 stocks in its basket. Of these, Amazon takes the top spot with a 22.5% share.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.2 billion in its asset base while trading in a good volume of around 71,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 309 stocks in its basket. Of these, Amazon occupies the top position, with a 22.6% allocation. Broadline Retail takes the largest share at 25%, while automobile manufacturers, restaurants, and home improvement retail round off the next three spots (read: Hurricane Idalia Puts These ETF Areas in Focus).
VCR charges investors 10 bps in annual fees, while volume is moderate at nearly 92,000 shares a day. The product has managed about $5.2 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most popular product in this space, with AUM of nearly $17.5 billion and an average daily volume of around 4 million shares. Holding 52 securities in its basket, Amazon takes the top spot with 24.2% of assets. Broadline retail, automobiles, hotels, restaurants & leisure, and specialty retail are the top four sectors with double-digit exposure each.
Consumer Discretionary Select Sector SPDR Fund charges 0.10% in expense ratio and has a Zacks ETF Rank #1 with a Medium risk outlook.
VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with a 21.5% share (read: String of Q2 Earnings Beat Fails to Lift Retail ETFs).
VanEck Vectors Retail ETF has amassed $153.8 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 6,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
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Amazon Records Longest Monthly Winning Streak: ETFs to Tap
Amazon (AMZN - Free Report) has outperformed the broader stock market in August, having gained 3.2%. This represents the sixth straight month of gains and the longest monthly winning streak since July 2011. The e-commerce giant pulled in about $423.7 billion in market cap since the beginning of its winning streak.
History suggests that Amazon’s outperformance could continue in September and would be the longest monthly winning streak in 20 years. Per a Business News article, Amazon has provided an average return of 6.6% for the month of September, its best performance in that month being an astonishing 86% gain in 1997, the first year it was listed on the stock market. A total of 58% of September has been positive for the stock.
Investors seeking to tap the bullish trend could consider ETFs having a substantial allocation to this online behemoth. These include ProShares Online Retail ETF (ONLN - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) .
Strong Trends
The surge was propelled by Amazon's recent partnership announcement with Shopify (SHOP). The collaboration will see Amazon's Buy With Prime app integrating with Shopify, streamlining the process for sellers to link the Amazon-centric payment feature with their Shopify outlets.
Since its comprehensive launch in January, the Buy with Prime program has seen robust adoption. "Amazon revealed in January a 25% uptick in conversions on merchant sites, based on data from the initial Buy With Prime rollout in April 2022,” noted RBC's Brad Erickson on Aug 31.
In August, Amazon smashed market expectations in a big way. It reported the biggest profit beat in 10 quarters and returned to double-digit revenue growth. The e-commerce giant also provided an optimistic outlook (read: 5 ETFs to Profit from Amazon's Q2 Earnings Beat).
Bulls Are Here!
Wall Street is also bullish on the stock. Amazon currently has an average brokerage recommendation (ABR) of 1.14 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 39 brokerage firms. The current ABR compares to an ABR of 1.14 a month ago based on 39 recommendations.
Of the 39 recommendations deriving the current ABR, 34 are Strong Buy and four are Buy. Strong Buy and Buy account for 87.18% and 10.26% of all recommendations, respectively. A month ago, Strong Buy made up 87.18%, while Buy represented 10.26%.
Based on short-term price targets offered by 39 analysts, the average price target for Amazon comes to $166.85. The forecasts range from a low of $115.00 to a high of $230.00.
Solid Earnings Estimate Revisions
Amazon saw solid earnings estimate revision of 68 cents over the past month for this year, with an estimated earnings growth of 214.1%. This compares favorably with the industry’s growth projection of 44.53%.
AMZN has a Zacks Rank #1 (Strong Buy) and a top Growth Score of A. The stock falls under a top-ranked Zacks industry (top 30%).
ETFs to Buy
ProShares Online Retail ETF (ONLN - Free Report)
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 20 stocks in its basket. Amazon is the top firm, accounting for 23.7% of the portfolio.
ProShares Online Retail ETF has amassed $100.5 million in its asset base and currently trades in a moderate volume of around 18,000 shares a day on average. It charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 297 stocks in its basket. Of these, Amazon takes the top spot with a 22.5% share.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.2 billion in its asset base while trading in a good volume of around 71,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Vanguard Consumer Discretionary ETF (VCR - Free Report)
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 309 stocks in its basket. Of these, Amazon occupies the top position, with a 22.6% allocation. Broadline Retail takes the largest share at 25%, while automobile manufacturers, restaurants, and home improvement retail round off the next three spots (read: Hurricane Idalia Puts These ETF Areas in Focus).
VCR charges investors 10 bps in annual fees, while volume is moderate at nearly 92,000 shares a day. The product has managed about $5.2 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most popular product in this space, with AUM of nearly $17.5 billion and an average daily volume of around 4 million shares. Holding 52 securities in its basket, Amazon takes the top spot with 24.2% of assets. Broadline retail, automobiles, hotels, restaurants & leisure, and specialty retail are the top four sectors with double-digit exposure each.
Consumer Discretionary Select Sector SPDR Fund charges 0.10% in expense ratio and has a Zacks ETF Rank #1 with a Medium risk outlook.
VanEck Vectors Retail ETF (RTH - Free Report)
VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with a 21.5% share (read: String of Q2 Earnings Beat Fails to Lift Retail ETFs).
VanEck Vectors Retail ETF has amassed $153.8 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 6,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.