Value Stocks Still Lurk Amid Market Highs

The stock market's recent surge to all-time highs has left some investors feeling anxious. However, beneath the surface of the indexes' dizzying heights lie several top companies that still offer value stocks for savvy investors.

Amazon (NASDAQ: AMZN) is one such company. Despite its impressive history of outsize gains in the e-commerce and cloud industries, Amazon's P/E ratio has fallen to 22, a level below the S&P 500 average of 30. This decline is partly due to the company's rising stock price not keeping pace with revenue and profit growth.

Amazon recently reported its second-quarter results, which saw net sales climb 20% year-over-year to $201 billion. The company's cloud segment, AWS, was a standout performer, increasing revenues by 37%. Meanwhile, Amazon's Q2 net income grew by 244% year-over-year to $62.6 billion.

While Amazon's growth is certainly impressive, there are concerns about the company's massive investment plans, including a $220 billion capex spending increase for the year. However, given the company's track record of delivering returns on investment, it's hard to bet against Amazon.