5 Best Retail Stocks to Buy Now

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1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is a Bellevue, Washington-based e-commerce giant that is also diversified into other businesses like online advertising, artificial intelligence, cloud computing, and digital streaming. We have selected Amazon.com, Inc. (NASDAQ:AMZN) as one of the best retail stocks because of its strong presence in the retail segment. The company is the second biggest retailer in the world through its e-commerce segment.

The recent dip in stock price provides an attractive opportunity for investors to go long on Amazon.com, Inc. (NASDAQ:AMZN) stock. The North American business of the company is showing signs of strength as sales in the region increased by 20% YoY to $78.8 billion during Q3 2022. The improvement in sales can be attributed to 150 million Amazon Prime subscribers in the US that are taking full advantage of the e-commerce platform. Analysts think positive holiday season sales can generate quick returns for investors that take a long position in Amazon.com, Inc. (NASDAQ:AMZN).

Here’s what Alger Capital said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

Amazon.com, Inc. (NASDAQ:AMZN) is a well-known online retailer and cloud computing leader. The company’s amazon web services business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. Shares outperformed during the quarter as investors were encouraged by strong second-quarter performance despite a challenging macroeconomic environment. Moreover, the company’s retail segment was resilient and avoided discounting inventory like some major retailers did. Revenues for the company’s cloud computing segment, amazon web services (AWS), grew faster than analysts’ estimates during the quarter due to continuing corporate demand for digitization. As a result, management provided better-than-expected forward guidance.”

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