7 Best Consumer Cyclical Stocks To Buy According to Hedge Funds

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1. Amazon.com, Inc. (NASDAQ:AMZN)  

Number of Hedge Fund Investors: 308

Amazon.com, Inc. (NASDAQ:AMZN) is a global leader in e-commerce and cloud computing, offering a broad array of products and services. The company’s Amazon Web Services (AWS) division dominates the cloud infrastructure market, significantly contributing to the company’s profitability. Amazon.com, Inc. (NASDAQ:AMZN) has a diverse business model, which spans e-commerce, logistics, entertainment (through Prime Video), and artificial intelligence (via Alexa).

A major factor in Amazon.com, Inc.’s (NASDAQ:AMZN) growth is its leadership position in the cloud computing sector. The company’s cloud business is poised for continued growth, fueled by the rising adoption of cloud computing and increasing demand for data storage and analytics. Amazon.com, Inc. (NASDAQ:AMZN) technological innovations, including advancements in artificial intelligence (AI) and robotics, are expected to further enhance its growth and operational efficiency. The company’s AI-driven advertising platform has also bolstered its advertising business, while its robotics initiatives have improved logistics efficiency.

Amazon.com, Inc. (NASDAQ:AMZN) e-commerce operations are set to benefit from the ongoing expansion of online shopping. Moreover, the company’s global expansion is projected to drive further growth, particularly as the company’s penetration in some regions remains relatively low. Amazon.com, Inc.’s (NASDAQ:AMZN) The Prime Big Deal Day event on October 10 also saw a record number of customers sign up for Prime, with members saving over $1 billion across deals.

Amazon.com, Inc.’s (NASDAQ:AMZN) strong growth prospects, improving profitability, and investments in AI make it an attractive investment opportunity. The company’s earnings are expected to rise by nearly 48% this year. Industry analysts have a consensus on the stock’s Buy rating, with an average target price of $218.90, indicating a potential upside of 14.66% from current levels.

While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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