Investing in consumer-facing companies can be a great way to find winning stocks. Some of the most dominant businesses on Earth sell products and services directly to individuals. And for the average investor, they are generally easier to understand.
With so many companies out there, it can be difficult figuring out where to start. What is one of the best consumer goods stocks to buy right now?
Obsessing over customers is in this company's DNA
There is perhaps no business that's as customer-centric as Amazon (AMZN -4.97%). In fact, founder and former CEO Jeff Bezos early on made obsessing over the customers' needs a top priority. This focus has worked out extremely well.
Today, Amazon has a market cap of $2.4 trillion. And in the past two decades, its shares have soared 10,220% (as of Oct. 8).
Investors are positioned for market-beating returns
It might be surprising to learn that this stock is still a smart investment opportunity even after its huge past gains. Amazon has positioned itself to benefit from multiple tech-driven trends, like online shopping, streaming entertainment, digital advertising, cloud computing, and artificial intelligence. Revenue growth will still be healthy going forward.
The valuation is attractive today. Investors can buy the stock at an enterprise value-to-EBIT (earnings before interest and taxes) multiple of 31.4, which is close to the cheapest level in the past decade.
