With the holiday season ramping up, maybe its time to consider a gift to yourself. Or at least your portfolio. One of the hottest-performing companies of 2020 has struggled since tech stocks were sold off en masse back in September. Shares in Amazon (NASDAQ:AMZN) hit an all-time high on Sept. 2, then began a slide.

Two months later, AMZN stock remains cheaper than it’s been since mid-August.

With what is expected to be the holiday quarter to end all holiday quarters, you can bet Amazon will surge in the new year.

If you want to take advantage of the situation, you’re definitely going to want to act before the company reports its fourth quarter earnings in February.

However, I’d be making my move now while it’s still near that September low. The longer you wait, the higher the chance the market comes around and eats into the upside.

A Likely Record-Smashing Holiday Quarter

I recently wrote about what will be a blowout Q4 for Amazon. Every year like clockwork, the fourth quarter is Amazon’s biggest, powered by holiday shoppers. This year is going to be even more extreme.

Delayed by the pandemic, the company’s two-day Prime Day event landed in Q4 this year. [Throw in] Black Friday and Cyber Monday. And then there is Boxing Day.

All of these shopping days are huge for Amazon under normal circumstances. But 2020 is far from normal. Not only is Prime Day added to the usual high profile holiday shopping days, but online shopping in general has gotten a huge boost from the pandemic.

When Amazon reports those numbers, the market is going to react in a big way — and I expect AMZN stock is going to be heading on another run.

Amazon Pharmacy

If the prospect of massive holiday sales numbers aren’t enough to convince you that Amazon is due for a rebound, here’s something else to consider. Last week, the company launched Amazon Pharmacy.

The new service will offer Amazon shoppers a wide range of brand name and generic drugs, including prescription medications such as insulin and steroid creams. Amazon Prime members will get additional benefits including free, two-day delivery. The company is also promising Prime members will enjoy big savings on medication. Amazon says it will accept most health insurance plans.

Pharmacy and drug store chains should be shaking in their boots at the prospect of Amazon Pharmacy. Amazon shareholders should be rejoicing.

Bottom Line on AMZN Stock

Amazon stock has posted impressive growth in 2020, super-charged by the rapid ramp-up in online shopping during the pandemic. However, Amazon shares have yet to recover from September’s broad tech stock selloff.

At this point, AMZM stock remains off its Sept. 2 high close by 11.5%. We’re just coming into what is always the company’s strongest quarter — one that’s going to be absolutely huge (thanks again to the pandemic) — and Amazon Pharmacy just launched.

To me, the current weakness in Amazon is a huge buying opportunity. This is a chance to pick up a classic Portfolio Grader “A-rated” stock at a discount, before it starts its next surge. Heck, one investment analyst (Michael Levine of Pivotal Research) even thinks AMZN is on track to hit $4,500 in the next 12 months.

I’m not sure I go so far as to predict 44% upside, but then again I would never have guessed Amazon would be up nearly 71% in 2020 — despite being in a two-month slump.

— Louis Navellier and the InvestorPlace Research Staff

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Source: Investor Place