The retail sector has been performing very poorly over the last year. The problems in the credit market have had a huge impact on the spending habits of consumers, and retailers have struggled as a result. Declining sales and rising costs. Not exactly the recipe for profitability.
Despite the general downturn in retail business, one online retailer continues to grow. Amazon.com (AMZN) reported second-quarter results on July 23, and they beat estimates handily.
Analysts were expecting Amazon to earn $0.26 per share… and the company reported earnings of $0.37. Revenues nearly doubled from the same period last year.
AMZN has been stuck between $61 and $97 for the past 15 months, but appears to be heading toward the upper end of that range on this news. With solid support at $61 and momentum to the upside, AMZN deserves a spot in your portfolio. If the company continues to grow revenues and earnings at this pace, the $97 resistance point should be overtaken.
[Ed. Note: Knowing which stocks to invest in - and which to avoid - can be overwhelming. Especially if you're new to the investing game. That's where investment analyst Rick Pendergraft comes in. He's got an embarrassing secret that can help you make money. Learn more here.]
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