Amazon.com Inc. (NASDAQ:AMZN) plans to expand in North Las Vegas with its fourth Nevada fulfillment center.
For the last few years, the company has been spending heavily on its new fulfillment centers. These are important in order to provide the level of service that customers have started expecting from Amazon.
Over the last year, the company has outperformed the industry it belongs to. Shares of Amazon have gained 55.1% compared with the industry’s growth of 44.1%.
More on the Headlines
The latest fulfillment center spans more than 800,000 square feet and will create 1,000 full-time jobs
Apart from that, this new facility will be primarily focusing on smaller items such as books, household items and children’s toys.
The online retailer has been increasing its investments to build and modernize fulfillment centers, primarily for cutting shipping costs and speeding up delivery. Currently, the company has three Nevada fulfillment facilities in North Las Vegas and Reno. The three fulfillment centers together employ more than 3,000 full-time associates.
Bottom Line
Fulfillment centers help Amazon in the storage and shipping of products, in addition to handling returns quickly. In fact, these are important in order to cater to its customers’ needs in a better way.
Additionally, small retailers who are unable to provide relatively cost-efficient shipping are signing up for Amazon’s fulfillment services. Third parties also avail the company’s warehouses and shipping services. These, in turn, are expected to help the company boost revenues and drive expansion in the long haul.
However, heavy investments in these arrangements (and several other initiatives) are keeping Amazon’s margins under pressure, thereby affecting its bottom line. Also, Amazon’s retail business is currently facing stiff competition from Alibaba and eBay, among others.
Zacks Rank & Other Stock to Consider
Amazon carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the technology sector are Stamps.com Inc. (NASDAQ:STMP) , PetMed Express (NASDAQ:PETS) and Alibaba Group Holding Limited (NYSE:BABA) . While Stamps.com sports a Zacks Rank #1, PetMed and Alibaba carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings per share growth rate for Stamps.com, PetMed and Alibaba is projected to be 15%, 10% and 30.5%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
PetMed Express, Inc. (PETS): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Stamps.com Inc. (STMP): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Original post