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Amazon

Amazon

OVERVALUED
Earnings report date: July 23
Expected EPS: 26
Price to projected earnings ratio: 45.69
PEG: 2.16
Stock Price as of July 11: $68.54

Many analysts view Amazon's earnings multiple as a sign the stock is due to decline. To justify its PEG, Amazon (AMZN) would have to grow earnings at nearly twice the rate of the S&P 500's IT sector for many years to come. But there's reason for optimism. The company increased earnings 150% in 2007 and has had success developing new businesses, such as with the Kindle electronic reader. Yet in this topsy-turvy market, investors may seek haven elsewhere.