Here's Why Amazon (AMZN) is a Strong Momentum Stock

Zacks Investment Research highlights Amazon (AMZN) as a stock to watch for momentum investors, citing a Momentum Style Score of B and a 6.4% share increase over the past four weeks. Six analysts have revised fiscal year 2025 earnings estimates upward in the last 60 days, increasing the Zacks Consensus Estimate to $6.31 per share, and AMZN boasts a 20.7% average earnings surprise; the stock currently holds a Zacks Rank #3 (Hold) with a VGM Score of B.

Analysis

Amazon (AMZN) currently holds a Zacks Rank #3 (Hold), yet exhibits several positive indicators relevant for momentum-focused analysis. The stock has achieved a Momentum Style Score of 'B' and an overall VGM (Value, Growth, Momentum) Score of 'B', supported by a significant 6.4% share price appreciation over the past four weeks. Analyst sentiment for fiscal year 2025 appears constructive, as evidenced by six upward earnings estimate revisions within the last 60 days, which have collectively increased the Zacks Consensus Estimate by $0.07 to $6.31 per share. Furthermore, Amazon demonstrates a consistent ability to surpass market expectations, boasting an average earnings surprise of 20.7%. While a Zacks Rank #3 typically suggests a neutral short-term outlook, the accompanying 'B' grades in Momentum and VGM, coupled with positive earnings estimate revisions, indicate potential upside, aligning with Zacks' guidance that #3 ranked stocks with 'A' or 'B' style scores can still present favorable prospects.

Key Decisions for Investors

• Investors should acknowledge AMZN's Zacks #3 (Hold) rating but consider the positive momentum indicators, including its 'B' Momentum Score, recent 6.4% share appreciation, and upward FY2025 earnings estimate revisions.
• Momentum-oriented investors might find AMZN a noteworthy candidate for their watchlist, particularly given its favorable Momentum Style Score and consistent historical earnings surprise of 20.7%, even though it is not currently a top-tier Zacks Buy-rated stock.
• Given the Hold rating alongside 'B' level VGM and Momentum scores, investors should monitor AMZN for any changes in its Zacks Rank or further shifts in analyst earnings estimates before making significant allocation decisions based solely on these current momentum factors.