Amazon's Growth Forecast and Stock Ratings Insights

Investors keen on Amazon (AMZN) should note its strong growth potential. The stock holds a Zacks Rank of #3, yet showcases an impressive earnings growth rate of 14.3% for FY2024, with upward revisions in earnings estimates over the past months.

Date: 01-04-2025

AI Rating: 7

Stock Overview: Amazon (AMZN) has been spotlighted for its growth potential, holding a Zacks Rank of #3 (Hold) with a remarkable Growth Style Score of A. Notably, projections indicate a year-over-year earnings growth rate of 14.3% for the current fiscal year, which positions Amazon as a compelling option for growth investors.

Growth Analysis: The Zacks Consensus Estimate for Amazon’s EPS has seen significant upward revisions, with an increase of $0.08 to $6.32 per share in recent months. This upward trend in earnings estimates indicates positive sentiment among analysts regarding Amazon's future performance, as it reflects improved projected profitability. Additionally, the company's average earnings surprise of 25.3% historically signals that actual earnings have often exceeded expectations, enhancing investor confidence.

Investor Implications: The combination of a solid growth forecast and a robust Zacks Rank makes Amazon an appealing investment, especially amidst its current #3 ranking. Investors should focus on identifying stocks that possess not just a favorable Zacks Rank (preferably #1 or #2) but also strong style scores (A or B) to maximize potential for success. While Amazon holds a hold rating currently, the prospects of growth merit observation by investors looking to capitalize on potential upside.

Stocks: AMZN