5 Cheap Retail Stocks to Buy

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

Number of Hedge Fund Holders: 240

One-Year Average Price Estimate: $133

Over the past one-year Amazon.com, Inc. (NASDAQ:AMZN) has lost about 38% in value through April 5. Many analysts believe this share price decline has created an attractive entry point on Amazon.com, Inc. (NASDAQ:AMZN) shares. Recently, Evercore ISI’s Mark Mahaney said in a note that the long-term bull thesis for Amazon remains “very much intact” and urged investors to show patience as Amazon.com, Inc. (NASDAQ:AMZN) navigates challenges.  The analyst expects Amazon.com, Inc. (NASDAQ:AMZN)’s retail segment to post margin recovery in the first half of 2023. The analyst said that he views Amazon.com, Inc. (NASDAQ:AMZN) as “classic DHG (Dislocated High Quality) stock.”

Renaissance Large Cap Growth Strategy made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter:

“On the negative side, Amazon.com, Inc. (NASDAQ:AMZN) was our worst performing stock in the quarter. The company is finally seeing the consumer and enterprise weakness that other companies encountered earlier in the year. In addition, AWS growth decelerated in the third quarter, with management citing new pricing pressures as competitors look to gain market share. We found Amazon’s comments on cost controls and employee layoffs concerning, given the company’s historical propensity to invest in all macroeconomic environments. Management’s comments that the macro-economic slowdown was more sudden than expected is also concerning, especially since they do not expect an improvement in consumer trends anytime soon.”

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