Amazon (AMZN - Free Report) is leaving no stone unturned to strengthen its freight delivery services in a bid to bolster presence in the online retail space further.
The e-commerce giant has recently joined forces with Woolpert, a Beavercreek-based engineering, geospatial and architecture firm for the development of its airport project called Amazon CVG Air Cargo Hub at Cincinnati/Northern Kentucky International Airport.
Per the terms of the deal, Woolpert will assist in the planning of landside and airside design. Further, it will provide services related to survey and civil engineering.
The latest move of Amazon is likely to bring efficiency to its project. Further, AECOM, an engineering company has been contracted for the designing of the cargo hub’s facility complex.
Strengthening Freight Services
The abovementioned endeavor of Amazon is in sync with its continued focus toward enhancement of its goods shipment services.
Reportedly, Amazon CVG Air Cargo Hub which is at its development stage will include several parking positions, huge airfield pavement, support facilities and various platform levels on its completion.
Further, Amazon Air has announced plans to set up a package-sorting facility and a new air gateway at Wilmington Air Park. The company’s plan is inclusive of daily flights. Notably, this project is likely to aid socially as well by creating numerous jobs in the Clinton County.
Additionally, the company has received its 20th B767-300 converted freighter from the Atlas Air Worldwide Holdings (AAWW - Free Report) . This has strengthened Amazon’s domestic air network.
Notably, the expanding freight services of the company will fasten its delivery services in the domestic as well as in the global markets. This bodes well for its dominant position in the global e-commerce market.
Coming to the price performance, shares of Amazon have returned 44% over a year, outperforming the industry’s rally of 0.4%.
Retail Segment to Benefit
We believe strengthening freight facility and delivery services will aid the company’s expanding footprint in the international online retail markets as it is likely to expand its customer reach by reducing shipping times.
Moreover, this will help the company in delivering enhanced shopping experience to its customers. This in turn will aid Amazon in attracting customers to its e-commerce platform, consequently expanding customer base.
All these will drive the company’s top-line. Further, it will strengthen the retail segment of Amazon which is its core business
Zacks Rank & Stocks to Consider
Currently,Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Adobe Systems (ADBE - Free Report) and Fitbit (FIT - Free Report) . Both the stocks carry 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 for Adobe Systems and Fitbit is pegged at 16.4% and 12.31%, respectively.
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