Earnings Estimates Moving Higher for Amazon (AMZN): Time to Buy?

Core Viewpoint - Amazon (AMZN) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock price growth [1][2]. Earnings Estimate Revisions - Analysts are increasingly optimistic about Amazon's earnings prospects, leading to higher earnings estimates that are expected to positively influence the stock price [2]. - The Zacks Rank system, which categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell), has shown that stocks with a Zacks Rank 1 have generated an average annual return of +25% since 2008, highlighting the effectiveness of earnings estimate revisions [3]. - For the current quarter, the earnings estimate is $1.97 per share, reflecting a +5.9% change from the previous year, with 12 estimates moving higher and one lower in the last 30 days, resulting in a 5.05% increase in the Zacks Consensus Estimate [7]. - For the full year, the expected earnings are $7.13 per share, representing a +28.9% year-over-year change, with 11 estimates moving higher and no negative revisions, leading to a 5.55% increase in the consensus estimate [8]. Zacks Rank and Performance - The positive revisions in earnings estimates have earned Amazon a Zacks Rank 2 (Buy), indicating strong potential for outperformance compared to the S&P 500 [9]. - Stocks rated Zacks Rank 1 and 2 have historically outperformed the S&P 500, reinforcing the investment case for Amazon [9]. Recent Stock Performance - Amazon shares have increased by 15% over the past four weeks, suggesting that investor confidence is growing based on the favorable earnings estimate revisions [10].