Amazon (AMZN) To Come Up With New Facility In Troutdale

In order to deliver goods on time, Amazon.com Inc. (NASDAQ:AMZN) has been spending heavily on its new fulfillment centers recently. These are important for providing the level of service that customers started expecting from Amazon.

The company recently announced its plans of opening its first fulfillment center in the state of Oregon in Troutdale. The center will primarily focus on smaller items such as books, electronic devices and children’s toys.

Only last week, the online giant announced its plans of opening a fulfillment center in Fresno, California spanning 855,000 square feet.

For the last two years, shares of Amazon have been steadily treading higher. The stock has returned 135% compared with the Electronic Commerce industry’s gain of 59.8%.

Other Details

Fulfillment centers are giant warehouses that help online retailers in storing and shipping products and handling returns quickly.

According to Amazon, the new facility, spanning 855,000 square feet, will create more than 1,500 full-time jobs.

Currently, the company operates a sortation center in Hillsboro and Prime Now hub in Portland. Also, there are over 40,000 authors, sellers, and developers in Oregon, expanding their businesses via Amazon products and services.

Amazon stated that it pays competitive wages and gives healthcare and other full-time employee benefits to its workers. Additionally, the company offers programs like Career Choice to help employees pursue courses related to fields that are in demand. The online giant also provides other benefits like generous maternity and parental leaves.

Our Take

The world’s largest online retailer has been strengthening its presence across the globe. To date, Amazon has created millions of full-time jobs and continues to hire manpower to meet growing customer demand.

We feel, Amazon must maintain its U.S. market share while expanding globally to retain its leading position. For this, the company needs to invest more in fulfillment as well as technology and content, especially in international markets with less penetration and higher growth rates.

Although increased expenses may hurt the company’s bottom line in the near term, we believe it is necessary for the company to maintain its dominance in this highly competitive market.

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. Price and Consensus | Amazon.com, Inc. Quote

Zacks Rank & Stocks to Consider

Currently, Amazon has a Zacks Rank #3 (Hold). Other better-ranked stocks in the industry are Autobytel Inc. (NASDAQ:ABTL) , Mercadolibre, Inc. (NASDAQ:MELI) and PetMed Express, Inc. (NASDAQ:PETS) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Autobytel Inc. delivered a positive earnings surprise of 41.98%, on average, in the trailing four quarters.

Mercadolibre, Inc. delivered a positive earnings surprise of 26.74%, on average, in the trailing four quarters.

PetMed Express, Inc. delivered a positive earnings surprise of 9.32%, on average, in the trailing four quarters.

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