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Amazon (AMZN) is a Top-Ranked Momentum Stock: Should You Buy?

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

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 #1 (Strong Buy), holds a Momentum Style Score of B, and has a VGM Score of A. The stock is down 5.9% and up 2.8% over the past one-week and four-week period, respectively, and Amazon has gained 38.8% in the last one-year period as well. Additionally, an average of 44,358,356 shares were traded over the last 20 trading sessions.

Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.04 to $4.58 per share. AMZN boasts an average earnings surprise of 48.2%.

With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding AMZN to their portfolios.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

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Zacks Investment Research