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Five Reasons to Buy Amazon (AMZN) Ahead of Earnings

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On Thursday, February 1st, Amazon (AMZN - Free Report) will release its fourth quarter earnings results after the bell. The company is a Zacks Rank 3 (Hold), and have a Value, Growth, and Momentum score of C.

Dave will look at Amazon’s past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Amazon ahead of earnings.

Amazon in Focus

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo; and provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store.

Amazon is expected to report earnings at $1.85 per share according to the Zacks Consensus Estimate. Last quarter they beat earnings expectations by 5,100%. They reported earnings at $0.52per share, beating their estimate of $0.01. They have an average earnings surprise of 1,270.57% over the last 4 quarters.

Amazon.com, Inc. Price, Consensus and EPS Surprise

Amazon.com, Inc. Price, Consensus and EPS Surprise | Amazon.com, Inc. Quote

Bottom Line

How should investors play Amazon ahead of their earnings report? For insights on the best options trades, then tune in at 11:00am CST today to see David’s thoughts.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

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