Why Amazon (AMZN) is a Top Growth Stock for the Long-Term

Zacks.com highlights Amazon (AMZN) as a compelling growth stock, assigning it a Zacks Rank of #3 (Hold) but a Growth Style Score of A and a VGM Score of B. The analysis notes a projected 14.1% year-over-year earnings growth for the current fiscal year, supported by upward earnings estimate revisions, with the consensus for fiscal 2025 increasing to $6.31 per share, and an average earnings surprise of 20.7%.

Analysis

Amazon (AMZN) is highlighted by Zacks.com as a significant growth stock candidate, despite its current Zacks Rank of #3 (Hold), primarily due to its strong ancillary metrics within the Zacks system. The company exhibits a 'B' VGM Score and an 'A' for its Growth Style Score, indicating favorable characteristics for growth-focused investors. Supporting this outlook, AMZN is projected to achieve 14.1% year-over-year earnings growth for the current fiscal year. Analyst sentiment for fiscal 2025 is also strengthening, with six analysts revising their earnings estimates upward in the past 60 days; this has led to an increase in the Zacks Consensus Estimate by $0.08 to $6.31 per share for that period. Furthermore, Amazon has demonstrated a consistent ability to surpass market expectations, evidenced by an average earnings surprise of 20.7%. The Zacks methodology itself posits that stocks with a #3 (Hold) rank, when accompanied by strong Style Scores of A or B as AMZN possesses, still offer potential upside and warrant a place on investors' shortlists, reflecting the system's emphasis on earnings estimate revisions as a key driver of stock performance.

Key Decisions for Investors

• Investors with a growth-oriented strategy should consider Amazon's strong 'A' Growth Style Score and the projected 14.1% current-year earnings growth, alongside positive fiscal 2025 earnings estimate revisions.
• The consistent average earnings surprise of 20.7% suggests robust operational execution, which could signal continued outperformance and potentially lead to future upgrades in its Zacks Rank.
• While the Zacks Rank #3 (Hold) warrants a degree of caution, the accompanying 'B' VGM score and the positive growth indicators suggest that AMZN should be monitored closely, particularly for further changes in earnings estimates which are pivotal to the Zacks rating system.