Amazon (AMZN): A Stock to Watch Based on Recent Trends and Earnings Prospects

Amazon (AMZN) has captured the attention of many investors as one of the most monitored stocks recently. Understanding the future trajectory of this stock is crucial for investors considering a stake in the e-commerce giant.

Earnings Estimates and Stock Performance

Earnings estimates are a vital factor for stock valuation. An upward revision in a company's earnings projections can signal a rise in its stock value. For Amazon, the current quarter earnings per share (EPS) expectation sits at $0.81, which represents a significant +161.3% change compared to the same quarter the previous year. Over the past 30 days, these earnings estimates have seen an +18.1% revision.

Looking into the fiscal year, Amazon's consensus earnings estimate of $4.06 reflects a year-over-year increase of +40%, with a notable +10.8% revision over the last 30 days. Similar positive trend is observed for the next fiscal year's earnings estimate of $5.30, showing a +30.5% year-over-year change, revising upwards by +10% in the past month.

Anticipated Revenue Growth

Revenue growth is equally important as earnings for assessing a company's financial health. For Amazon, analysts' consensus points to an +11.8% change year-over-year for the current quarter with a projected revenue of $142.39 billion. The revenue estimates for the current and next fiscal years project growth rates of +11.5% and +11.6%, respectively, reaching $641.11 billion and $715.33 billion.

Recent Financial Performance

In its most recent quarter, Amazon reported a revenue of $169.96 billion, which is a +13.9% change from the preceding year, along with an EPS of $1.01, up from $0.21 a year earlier. When compared to the consensus revenue estimate, the company's revenue exceeded expectations by +2.23%, with an EPS surprise of +24.69%.

Amazon has consistently surpassed EPS estimates in the last four quarters, reinforcing the company's track record of robust financial performance.

Stock Valuation Matters

Understanding if a stock's current price accurately reflects its intrinsic value is central to investment decisions. Amazon's valuation suggests it is trading on par with its peers, with a Value Style Score of 'C'.

This stock valuation is determined by comparing a variety of valuation multiples such as P/E, P/S, and P/CF against the company’s historical values and those of its competitors.

Looking Ahead

Considering these aspects—earnings estimate revisions, revenue growth projections, financial performance history, and stock valuation—Amazon is showing strong potential in the short term. This data provides investors with a comprehensive view of the stock's possible future direction.

Amazon, Earnings, Stocks