4 ‘Expensive Stocks’ Worth Every Penny

They're high-priced, but worth the premium

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4 ‘Expensive Stocks’ Worth Every Penny

amazon 4 'Expensive Stocks' Worth Every Penny

Amazon

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, http://investorplace.com/2013/09/4-expensive-stocks-worth-every-penny/.

©2014 InvestorPlace Media, LLC

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