Back to top

Amazon to Open First Fulfillment Center in Mississippi

Read MoreHide Full Article

Amazon.com Inc. (AMZN - Free Report) has announced plans to open its first fulfillment center in Mississippi in order to meet growing demand for online shopping.

Since the last few years, the company has been spending heavily on its new fulfillment centers, which aid online retailers to store and ship products, and handle returns quickly. Reportedly, the new store will be close to the Memphis International Airport, which is the main shipping hub for FedEx.  

Notably, the tech giant currently has 139 fulfillment centers in the United States. Fulfillment centers have now become a pre-requisite for providing the level of service that customers have started expecting from Amazon.

Shares of the company have gained 25.6% in the past year against the industry’s decline of 13.9%.

 

 

Inside the Headlines

The latest fulfillment center spans more than 554,000 square feet and will create 850 new full-time jobs. The center will primarily focus on consumer goods and will help in packing and shipping of garden products and toiletries.

Grants from Mississippi Development Authority, assistance for road improvement, property tax exemptions from Marshall County and aid from Tennessee Valley Authority have been instrumental in Amazon’s decision to open a center in Mississippi. Moreover, the company is expected to benefit from the region’s skilled workforce.

Amazon stated that it will pay $15 minimum hourly wage and provide healthcare along with other full-time benefits. In addition, the company will also offer programs like Career Choice to help employees pursue courses related to fields that are in demand. Moreover, the online giant will also provide other benefits like generous maternity and parental leaves.

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. Price and Consensus | Amazon.com, Inc. Quote

Our Take

Amazon continues to bolster its presence all over the world and has been successful in creating millions of full-time jobs to meet customer demand.

In our view, Amazon must maintain its U.S. market share while expanding globally to retain its leading position. To this end, the company needs to invest more in fulfillment. It also needs to enhance technology and content, especially in international markets with less penetration and higher growth rates.

Though increased expenses may hurt the company’s bottom line in the near term, we believe that it is necessary to maintain its dominance in this highly competitive market.

Zacks Rank & Stocks to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader computer and technology sector include Generac Holdings Inc. (GNRC - Free Report) , SS&C Technologies Holdings, Inc. and Symantec Corporation (SYMC - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Expected long-term earnings growth rate for Generac, SS&C and Symantec is 6.5%, 13.5% and 7.9%, respectively.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.      

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.   

See the pot trades we're targeting>>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Symantec Corporation (SYMC) - free report >>

Generac Holdlings Inc. (GNRC) - free report >>

More from Zacks Analyst Blog

You May Like