14 Stocks Insulated From Amazon's Dominance

There’s no sense (and no profits) in ignoring the 800-pound gorilla in the room. Amazon.com, Inc. AMZN has forever changed the landscape of Wall Street, and the companies that are unable to adapt or keep up with the times have been left in the dust. Bankruptcies have piled up over the last several years, and even many of the companies that have survived Amzon’s coming of age are struggling to hold onto profits and market share.

Amazon’s total domination has made stocks that are less susceptible to Amazon’s warpath hot commodities for investors. In a new research note, the BMO Capital Markets analyst team came up with a list of top stocks that are safe from becoming “Amazoned.”

“We provide below a list of 14 stocks, each of which the respective analyst believes is the most insulated, within his/her area of coverage, from the perceived or, in some cases, very real threat of Amazon disruption,” the report reads.

The team notes that irrational fears about Amazon’s long-term impact have created some attractive valuations and entry points for choosy investors. BMO’s analysis of Amazon’s business model and the company’s future direction are based on Amazon CEO Jeff Bezos’ annual letter to shareholders and its history of business acquisitions.

It’s impossible to perfectly predict what Amazon’s future holds, but here are 14 stocks BMO believes could thrive in the Amazon era:

    1. SYSCO Corporation SYY
    2. Clorox Co CLX
    3. Home Depot Inc HD
    4. Take Two Interactive Software Inc TTWO
    5. TJX Companies Inc TJX
    6. Cott Corp (USA) COT
    7. Dollarama Inc DLMAF
    8. Dave & Buster’s Entertainment, Inc. PLAY
    9. BorgWarner Inc. BWA
    10. MSC Industrial Direct C Inc. MSM
    11. Adobe Systems Incorporated ADBE
    12. Arista Networks Inc ANET
    13. Visa Inc V
    14. Texas Instruments Incorporated TXN

Related Link: SEC Charges Former Amazon Employee With Insider Trading 

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Image Credit: By Matthew Paul Argall (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

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