Buy Amazon for a prospective breakout, says Carter Worth
CNBC••business
Key Points:
- Amazon has underperformed the S&P 500 Index since June 2020, with a 79% gain compared to the S&P 500's 124% and other indices' higher returns during the same period.
- The stock's relative performance peaked in June 2020, driven by Covid-related online shopping trends, but has lagged behind since then.
- Analysts now believe Amazon is positioned for a breakout to new 52-week highs, making it an attractive investment both as an absolute long trade and relative to the S&P 500.
- Despite a history of "negative alpha" over the past 5½ years, owning Amazon is expected to generate positive alpha moving forward.
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