Now might be the best time to invest in Amazon (AMZN) over the last several years. Amazon is a growth stock which still has lots of growth ahead of it. The old adage based purely on common sense says to buy low in order to sell high. Amazon stock after years of overvaluation has finally become low enough.

Amazon is a true sales juggernaut where revenues have consistently grown year after year at a rate averaging 24.58% per annum. Since a company stock price is driven by its operating performance, a simple $10,000 investment in Amazon on January 4, 2002, would be worth $1,745,306.10. This equates to a compound growth rate of 28.21% which is in line with the company’s historical sales growth.

Even though Amazon has a market cap exceeding $1 trillion, the company is still expected to grow at double-digit rates going forward. Consequently, the recent market correction has provided investors a rare opportunity to invest in Amazon at a very attractive valuation.

Since they do not ring a bell at the top or bottom of the market, it would be disingenuous to imply that the stock has reached its low. However, prudent value investors recognize that finding the exact bottom is not really necessary. All the true value investor needs to do is recognize sound valuation when they see it, and most importantly, take advantage of it when it manifests.

In closing, now may not be the absolute best time to invest in Amazon, but I am very confident it is a very good time. AA rated Amazon is one of the very few companies that I can comfortably recommend for anyone’s portfolio regardless of their investment objectives. In the video I provide fundamental reasons why I am willing to recommend this stock to long-term value-oriented investors.

FAST Graphs Analyze Out Loud Video

— Chuck Carnevale

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Source: FAST Graphs

Disclosure: Long AMZN.