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Pro: Even at 205 Times Earnings, Amazon's Stock is Still Attractive

By BenZinga
Capital Markets

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The most expensive stock in the S&P 500 index based on a forward P/E ratio is Incyte Corporation (NASDAQ: INCY) at 206 times forward P/E. Ranking in a very close second place is Amazon.com, Inc. (NASDAQ: AMZN) at 205x forward P/E.

While one could easily conclude that Amazon’s stock is expensive, the case can be made for the stock to be attractive, at least according to S&P Global portfolio manager Erin Gibbs.

Amazon’s valuation has been climbing steadily from 140 times expected earnings over the next 12 months to its current 205 times, Gibbs explained during a recent CNBC “Trading …

Read the full story at Benzinga.

Photo: Getty iStock

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