The Smartest Retail Stock to Buy With $1,000 Right Now

Core Viewpoint - Amazon is currently viewed as a strong investment opportunity despite its recent stock performance, with analysts suggesting it is undervalued compared to historical metrics [1][3][8]. Company Overview - Amazon holds a market capitalization of $2.3 trillion, making it the most valuable member of the SPDR S&P Retail ETF, significantly larger than Walmart [2]. - The company commands approximately 40% of total U.S. e-commerce sales [2]. Stock Performance - Year-to-date, Amazon's stock has gained only 1.3%, underperforming the SPDR S&P Retail ETF's 8% increase and the S&P 500's nearly 15% rise through October 20 [2]. - Over the past month, Amazon's stock has declined by almost 4% amid economic concerns and geopolitical issues [3]. Analyst Ratings - A significant majority of analysts (66 out of 68) rate Amazon as a buy or strong buy, with an average 12-month price target of $266, indicating a potential upside of about 20% from current levels [3]. Valuation Metrics - Amazon's forward P/E ratio is currently 34 times expected earnings, which is the lowest it has been in a decade, despite being 50% higher than the S&P 500's equivalent ratio [5]. - The company's gross profit margin of 49.6% over the past 12 months places it in the 100th percentile for profitability, indicating it has never been more profitable in the last 10 years [6]. Long-term Outlook - Long-term investors are encouraged to consider Amazon as a favorable entry point, as current valuations are historically low [8].