Amazon (AMZN) is a Top-Ranked Momentum Stock: Should You Buy? (2024)
Zacks Equity Research
·2 min read
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Is This 1 Momentum Stock a Screaming Buy Right Now?
For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
Amazon (AMZN)
Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe.
AMZN sits at a Zacks Rank #2 (Buy), holds a Momentum Style Score of B, and has a VGM Score of A. The stock is up 0.8% and up 1.2% over the past one-week and four-week period, respectively, and Amazon has gained 74.6% in the last one-year period as well. Additionally, an average of 33,503,780 shares were traded over the last 20 trading sessions.
Momentum investors also pay close attention to a company's earnings. For AMZN, 15 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.41 to $4.08 per share for 2024. AMZN boasts an average earnings surprise of 51%.
AMZN should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. AMZN is a #2 (Buy) on the Zacks Rank, with a VGM Score of A. Momentum investors should take note of this Retail-Wholesale stock.
The IBD Stock Checkup tool shows Amazon stock with a Relative Strength Rating of 91 out of a best-possible 99, indicating the stock has outperformed most of the market over the past 12 months. Amazon stock also holds an IBD Composite Rating of 94 out of a best-possible 99.
Analysts are overwhelmingly bullish on the e-commerce giant. Indeed, Amazon is the highest-rated of all 30 Dow Jones stocks. According to S&P Global Market Intelligence, the consensus analyst target price for AMZN stock is $214.91, representing implied upside of nearly 20% to current levels.
Amazon is a forever stock, and it has many opportunities coming at it from its different businesses. It's still the king of e-commerce that started the whole story, and e-commerce continues to increase as a percentage of total retail sales.
Earnings are expected to grow 40.7% year-over-year for the current fiscal year, with sales growth of 11.6%. 15 analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.40 to $4.08 per share.
As a result, an investment of $10,000 a decade ago would be worth over $107,000 today. The company made many millionaires over the last decade, begging the question: Does it still have much to offer new investors? Let's examine Amazon's business more closely and determine whether it's still worth investing in in 2024.
Amazon has a mean target price of $202.49, which is 12% higher than yesterday's closing prices. Its Street-high target price of $230 implies an upside of 27.2% over the next 12 months. Analysts are overwhelmingly bullish on Amazon, and multiple brokerages listed it as a top pick for 2024.
Amazon price prediction 2024-2025. The CoinCodex price prediction for AMZN is forecasting that the stock could reach a new all-time high above $260 in January 2025. Keep in mind that the prediction above is based on the state of technical indicators as of March 20, 2024, and could change considerably over time.
Amazon.com Inc. shows a Risk Score of 9.00. 0 corresponds to a very high risk and 10 corresponds to a very low risk." The Risk Score for Amazon.com Inc. is significantly higher than its peer group's.
But, with such great size, comes a set of unique risks. The biggest risks of investing in Amazon.com, Inc. (NASDAQ: AMZN) stock are increasing competition, profit potential uncertainty, revenue growth uncertainty, speculative valuation and share price volatility.
Founder Jeff Bezos is Amazon's largest individual shareholder, with about $166 billion worth of shares. Institutional investors own about 63% of Amazon shares.
The average analyst rating for Amazon stock from 45 stock analysts is "Strong Buy". This means that analysts believe this stock is likely to perform very well in the near future and significantly outperform the market.
The 45 analysts with 12-month price forecasts for Amazon stock have an average target of 204.82, with a low estimate of 140 and a high estimate of 245. The average target predicts an increase of 9.86% from the current stock price of 186.44.
According to the latest long-term forecast, Amazon price will hit $200 by the end of 2024 and then $250 by the end of 2025. Amazon will rise to $300 within the year of 2027, $350 in 2028, $450 in 2029 and $500 in 2032.
Introduction: My name is Margart Wisoky, I am a gorgeous, shiny, successful, beautiful, adventurous, excited, pleasant person who loves writing and wants to share my knowledge and understanding with you.
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 is a Top-Ranked Momentum Stock: Should You Buy? (2024))
