The following video is from our Dec. 6 edition of MarketFoolery. In it, Joe Magyer drops some knowledge on investors everywhere by revealing a crucial metric he uses when analyzing retailers: revenue per employee.
While it's not an end-all-be-all number that will tell you when to buy or sell a stock, it is oftentimes closely correlated with how well those companies turn over their inventory.
Keeping this in mind will help you know when to buy and sell retail kings such as Amazon.com. Or you could just head over to our new premium report on the company and get The Motley Fool's best analysis on Amazon today. Our report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.
The article 1 Crucial Metric for Retail Stocks originally appeared on Fool.com.
Chris Hill and Joe Magyer own shares of Amazon.com. Rich Greifner owns none of the stocks mentioned. The Motley Fool owns shares of Amazon.com and Costco Wholesale. Motley Fool newsletter services recommend Amazon.com and Costco Wholesale. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.