Amazon's Resilience: A Must-Buy Stock for the Upcoming Bull Market

Amazon’s Resilience: A Must-Buy Stock for the Upcoming Bull Market

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Anticipating a Bull Market: A Stock to Consider on the Downturn and One to Approach Cautiously

The recent fluctuations in major stock market indexes have been a source of frustration for novice investors. However, historical data suggests that robust companies inevitably rebound, offering investors an opportunity to acquire top-performing stocks before they embark on another growth trajectory.

Over the past century, there have been numerous bear markets. Yet, had you invested $100 in the S&P 500 index (when it was known as the Composite Index) in 1927, right before the most significant market crash in history, your investment would now be worth over $1.1 million.

Building wealth in the stock market often involves holding shares in exceptional companies over time. Here, we present two examples of such companies to consider investing in during the current market climate, as well as one to approach with caution.

 

Consider Buying Amazon: Recognizable Potential for Profitable Growth

One stock that appears to be a strong buy for the impending bull market is Amazon (NASDAQ: AMZN). In 2022, the stock experienced a significant drop in value, mirroring the trend seen in many other growth-oriented technology stocks. This decline was primarily due to concerns regarding Amazon’s slowing sales growth, which, in our view, does not accurately reflect the company’s long-term potential. Although it has rebounded to some extent this year, there are compelling reasons for investors to contemplate adding Amazon shares to their investment portfolios.

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Amazon’s sales growth for the previous year was a modest 9%, a figure considerably below its decade-long average annual growth rate of nearly 24%. With annual sales exceeding $514 billion, Amazon is now more susceptible to fluctuations in consumer confidence than it was in the past.

However, we believe that these challenges will eventually transform into opportunities. The past three years have been far from ordinary for both the broader economy and Amazon. Nevertheless, the company might not be receiving the recognition it deserves for sustaining revenue growth despite significant disruptions affecting the retail sector.

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