Don't Ignore This Chart!

This Big League Stock Just Received A Buy Recommendation From 12 Wall Street Firms

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When the CEO of a major corporation states: "You may want to take a seat" during their quarterly earnings report, you can bet that some serious news is about to be shared. And indeed, Jeff Bezos of Amazon (AMZN) dropped a bomb when he stated that the company will be spending their projected June quarter operating profit of $4 billion or more, "on Covid-related expenses getting products to customers and keeping employees safe."

The response from Wall Street was swift and positive with 12 major Wall Street firms reiterating their buy and outperform ratings with some putting the stock on their top pick lists. Every firm raised their price target for Amazon with several citing levels that are 30% above its current price.

DAILY CHART OF AMAZON (AMZN)

As you can see in the chart above, AMZN had gapped up to new highs going into their quarterly results before dropping 7.6% as the news hit during last Friday's sharp market selloff. Near-term, the stock is finding support at its upward trending 21-day moving average with the RSI and MACD both in positive territory.

While many investors are on the lookout for a retest that may take the markets close to their March lows, select stocks such as Amazon could easily sidestep at least a portion of any sharp selloff. This is because the company is one of few that have the systems in place to service with scale and efficiency during the current pandemic. And their commitment to keeping employees and customers safe, is expected to add to the longer-term growth prospects for the company.

The recent move to Large Cap Growth stocks that are providing needed services during this country's current crisis, is a testament to investor's understanding that well capitalized companies that already have systems in place, will continue to see growth while others suffer.

If you'd like to be alerted to other stocks that are in bullish positions at this time, take a trail of my bi-weekly MEM Edge Report for 4-weeks at a nominal fee. If you sign up now, you'll receive this week's report immediately!

Warmly,

Mary Ellen McGonagle, MEM Investment Research

p.s. If you'd like to join me at my live trading room with Erin Swenlin of Decision Point tomorrow, sign up now. The event is free and we'll be covering stocks of interest in the current market while answering questions.


Mary Ellen McGonagle
About the author: is a professional investing consultant and the president of MEM Investment Research. After eight years of working on Wall Street, Ms. McGonagle left to become a skilled stock analyst, working with William O’Neill in identifying healthy stocks with potential to take off. She has worked with clients that span the globe, including big names like Fidelity Asset Management, Morgan Stanley, Merrill Lynch and Oppenheimer. Learn More
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