Major indices finish lower amid GE earnings disappointment >>> READ MORE

4 ‘Expensive Stocks’ Worth Every Penny

They're high-priced, but worth the premium

      View All  



Share price: $312
Year-to-date gains: 25%

First up, we have e-commerce king Amazon (AMZN). The popular shopping website often scares away investors with its triple-digit price tag and sky-high valuation, but it’s clear that investors have been comfortable paying what is fundamentally a big premium for even bigger potential growth.

Amazon has a lot going for it already — an innovative CEO, the Internet shopping megatrend, a popular Kindle e-reader, double-digit e-commerce market share — and also continues to try new things and expand to new countries.

No wonder, then, the company is slated for 36% annual earnings growth over the next five years — and that investors can’t seem to get enough. Over the past five years, Amazon has soared from a pretty standard $40 price tag to one north of $300.

And so far in 2013 alone, it’s beating the broader market with a 25% climb, making shelling out hundreds of bucks for a single share seem like a pretty savvy idea.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC