With the price of seemingly everything on the rise this year, the chance to score an actual deal on something is a real treat. Add in the fact that my top retail pick is not some no-name brand coming out of the damaged or defective bin and you have yourself an absolute steal.

I think it’s a great time to put $1,000 into shares of Amazon (AMZN 1.85%).

With its $2.3 trillion market cap, Amazon is already the most valuable of the 77 members of the SPDR S&P Retail ETF (XRT 0.43%), weighing in at almost three times the size of second-ranked Walmart.

Despite its size and roughly 40% share of total U.S. e-commerce sales, Amazon’s 1.3% year-to-date gain is well behind the 8% advance posted by the SPDR S&P Retail ETF and the nearly 15% increase by the S&P 500 index through Oct. 20.

Amazon

Today’s Change

(-1.85%) $-4.11

Current Price

$217.92

Over the past month, economic concerns, tariff worries, and general geopolitical jitters have been happening as Amazon’s stock slipped by almost 4%.

Beyond the fact that 66 of 68 analysts who cover Amazon currently rate it a buy or strong buy with an average 12-month price target of $266 — which is about 20% above current levels — the Seattle-based retail giant is in almost unprecedented valuation space right now by two key measures.

Image source: Amazon.

The really amazing part

Amazon’s forward P/E ratio is 34 times expected earnings over the next 12 months. While that’s still about 50% higher than the S&P 500’s equivalent ratio, it’s actually the cheapest that Amazon has been by that measure in a decade.

Said another way, since 2015, Amazon’s forward P/E ratio has been higher than it is right now 99% of the time.

Another bellwether valuation is also in historic territory. Specifically, Amazon’s gross profit margin of 49.6% delivered over the past 12 months lands it in the 100th percentile, meaning at no time in the past 10 years has Amazon been more profitable.

In short, long-term investors who’ve waited for a good entry point to own the digital retailing giant should look no further, and also feel comfortable that they’re getting a fair price.