We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Earnings Estimates Moving Higher for Amazon (AMZN): Time to Buy?
Read MoreHide Full Article
Amazon (AMZN - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this online retailer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Amazon, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
The company is expected to earn $0.33 per share for the current quarter, which represents a year-over-year change of +230%.
Over the last 30 days, seven estimates have moved higher for Amazon while three have gone lower. As a result, the Zacks Consensus Estimate has increased 18.25%.
Current-Year Estimate Revisions
The company is expected to earn $1.54 per share for the full year, which represents a change of +116.9% from the prior-year number.
The revisions trend for the current year also appears quite promising for Amazon, with nine estimates moving higher over the past month compared to two negative revisions. The consensus estimate has also received a boost over this time frame, increasing 13.88%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Amazon currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Amazon have attracted decent investments and pushed the stock 6.7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
View the Zacks #1 Rank List
Image: Bigstock
Earnings Estimates Moving Higher for Amazon (AMZN): Time to Buy?
Amazon (AMZN - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this online retailer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Amazon, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
The company is expected to earn $0.33 per share for the current quarter, which represents a year-over-year change of +230%.
Over the last 30 days, seven estimates have moved higher for Amazon while three have gone lower. As a result, the Zacks Consensus Estimate has increased 18.25%.
Current-Year Estimate Revisions
The company is expected to earn $1.54 per share for the full year, which represents a change of +116.9% from the prior-year number.
The revisions trend for the current year also appears quite promising for Amazon, with nine estimates moving higher over the past month compared to two negative revisions. The consensus estimate has also received a boost over this time frame, increasing 13.88%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Amazon currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Amazon have attracted decent investments and pushed the stock 6.7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.