U.S. Markets closed

Amazon (AMZN) to Open New Facility in Channahon, Add Jobs

Zacks Equity Research

Amazon.com Inc. AMZN announced plans to open a new fulfillment center in Channahon, IL, in order to meet the growing demand in the online shopping space.

The company has been spending heavily on new fulfillment centers over the past few years. Fulfillment centers are giant warehouses that help online retailers store and ship products, as well as handle returns quickly. These are important for providing the level of service that customers have started expecting from Amazon.

According to the company, the new facility will span more than 1 million square foot. Employees will pick, pack and ship larger customer items such as sports equipment, patio furniture, fishing rods, pet food, kayaks, bicycles, as well as larger household goods at the facility.

The facility is expected to create more than 500 full-time jobs that will offer wages starting at $15 an hour, including other comprehensive benefits. A few of these benefits include full medical, vision and dental insurance. In addition, maternal and parental paid leave of up to 20 weeks will be provided to its employees.

 

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Our Take

Amazon has been strengthening presence all over the world.

In our view, the company must maintain its U.S. market share while expanding globally, in order to retain the leading position. To this end, it needs to invest more in fulfillment, technology and content, especially in international markets with less penetration and higher growth rates.

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

Zacks Rank & Stocks to Consider

Amazon currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Booking Holdings Inc. BKNG, Ambarella, Inc. AMBA and Itron, Inc. ITRI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Booking Holdings, Ambarella and Itron is currently projected at 13.08%, 11.18% and 25%, respectively.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Ambarella, Inc. (AMBA) : Free Stock Analysis Report
 
Itron, Inc. (ITRI) : Free Stock Analysis Report
 
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.