Amazon.com, Inc. (AMZN) is currently trading at a discount, according to Evercore Institutional Equities Analyst Ken Sena. He says he favors companies that are creating a healthy marketplace dynamic, and he believes Amazon is one of those.
“The company is very consumer-centric, but when you look at the amount of volume that goes through their platform, trades at a discount, I’d say, even to Wal-Mart (WMT),” Sena says. “It’s growing much faster, and it has the potential for margin leverage.”
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Sena agrees with investors who think Amazon’s earnings per share are too low. However, he says Amazon has the opportunity to expand its margins because it is a strong grower with a huge addressable market and strong competitive barrier.
“Over time, all those things kind of point to I think a much better earnings per share story at a few years out,” Sena says. “So that’s one I really like.”
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