Essay Sample on Stock Market Analysis

Introduction

Target TGT stocks, Amazon AMZN stocks, Petco PETC stocks. These are among the largest companies in the United States while Amazon emerges the largest internet company in the world by revenues and the second largest employer in the United States. Target Corporation is a component of the S&P 500 Index and happens to be the eighth-largest retailer in the United States that supplies clothing and accessories, toys and games, beauty and health products, jewellery, food, bedding, shoes, furniture, small appliances, lawn and garden as well as electronics. Petco Animal Supplies Inc is a private pet retailer in the United States that sells certain types of live animals, pet products as well as services (Gibson, Defee, & Ishfaq, 2016). This paper tries to analyse the stock market of the three companies based in the United States.

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The main reason for choosing the three stocks is that they have their base or are key companies that operate within the United States and have established themselves in the country such that they are stable operators in the United States. Target Corporation and Amazon are public institutions while Petco is a private institution. The price of their stocks is stable such that it attracts investors to invest within these companies since according to the data provided concerning the market prices for the shares, they have remained stable without experiencing large fluctuations in the past and still they are predicted to continue growing without losing their value. According to NASDAQ-GS exchange, Amazon stock recorded a 52-week high of 2050.5 and a low of 1307, and Target stock recorded a 52-week high of 76.3 and a low of 75.44. Petco sells its shares at $19 each.

Just as most financial analysts say, that one's investment style should match his/her financial objectives then any average investor who selects these stock markets should have an investment objective of capital appreciation (Bams, Otten, & Ramezanifar, 2017). The reason is that, according to the recorded information concerning the stocks, the price per share has a little margin of rising and fall hence profits resulting from the buying and selling of these shares is minimal which may discourage investors with current income and speculation objectives. Investors with capital appreciation investment objective are only concerned with the long-term growth; hence they plan to hold the stocks for many years.

These investors let the stocks grow within their portfolio and reinvests the dividends by purchasing more shares. They ensure that they make regular purchases of the shares once they are capable of doing so. Investors with capital appreciation objective are never concerned about the daily fluctuations, but instead, they are focused on the rudiments of the company for vicissitudes which might affect the long-term growth of the company. Therefore, capital appreciation is the best objective for any investor who intends to invest in the three stock companies.

If I had bought Amazon's stock of 100 shares on 11th February 2019 at the cost of $1600.98 per share, the original total investment amount would be $160,098. The current stock value of my shares would be 100 shares that I bought multiplied by $1626.12 the current market price of each share to get $162,612 which is an increase from the original amount of investment by $2514. According to the revenue and market capitalisation, Amazon is the largest cloud computing and e-commerce marketplace platform in the world (Mueller et al. 2017). It was founded on 5th July 1994 by Jeff Bezos and first began as an online bookstore which later expanded into the sale of video streaming as well as downloads, jewellery, software, electronics, MP3 streaming and downloads, furniture, toys, video games, audiobook downloads and streaming, food as well as apparel.

The company owns Amazon publishing, Amazon studios, produces Echo, Kindle e-readers, Fire TV and Fire tablets devices and through its AWS subsidiary, it emerges the world largest provider of cloud infrastructure services. The company have different retail websites for other countries and offers international shipping services of its products to some countries. It has around 100 million subscribers to the Amazon prime. Target Corporation, was initially known as Goodfellow Dry Goods after George Dayton founded it in 1902 before being renamed in 1903 as Dayton's Dry Goods Company and later in 1910 was renamed Dayton Company. The company opened its first store in 1962 in Roseville, Minnesota. In 1967 the company was again renamed as Dayton Corporation before being merged with Hudson Company in 1969 and was now called Dayton-Hudson Corporation. The company established itself as the highest-earning division in the 1970s and expanded its stores nationwide in the 80s. Target company introduced under the Target brand, new store formats in the 1990s. In 2000, the mother company was renamed Target Corporation, and in 2004, it addressed itself on the company's last department store chains. As of February 2018, the company operates 1822 stores in the United States.

Petco Animal Supplies was founded in 1965 when it operated as a mail-order business that sold veterinary supplies. It was later in 2000 acquired by TPG Capital and Leonard Green & Partners. Petco merged with PetSmart in 2015 a deal that led to the failure of a deal offered by Canada Pension Plan Investment Board and the CVC Capital Partners to acquire Petco at $4.6 billion. On August 2018, the Canadian Tire signed a partnership deal with Petco to sell Petco's private label brands of pet accessories and food at the Canadian market from Tire's 500 Canadian stores. The company operated 1500 locations across Mexico and the United States as of 2017 including over 85 Unleashed by Petco locations.

References

Bams, D., Otten, R., & Ramezanifar, E. (2017). Investment style misclassification and mutual fund performance. In 28th Australasian Finance and Banking Conference. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2648375

Gibson, B. J., Defee, C. C., & Ishfaq, R. (2016). The State of The Retail Supply Chain. Center of Supply Chain Innovation-Auburn University. http://harbertcenters.com/supplychain/files/6th_Annual_SRSC_Report.pdf

Mueller, S. C., Bakhirev, A., Bohm, M., Schroer, M., Krcmar, H., & Welpe, I. M. (2017). Measuring and mapping the emergence of the digital economy: a comparison of the market capitalization in selected countries. Digital Policy, Regulation and Governance, 19(5), 367-382. https://www.emeraldinsight.com/doi/full/10.1108/DPRG-01-2017-0001