Amazon (AMZN) Gains As Market Dips: What You Should Know (2024)

Zacks Equity Research

·3 min read

Amazon (AMZN) closed the most recent trading day at $176.56, moving +0.66% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.54%.

The online retailer's shares have seen an increase of 4% over the last month, surpassing the Retail-Wholesale sector's gain of 2.94% and the S&P 500's gain of 3.18%.

The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. The company is predicted to post an EPS of $0.81, indicating a 161.29% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $142.42 billion, up 11.83% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.08 per share and a revenue of $641.36 billion, representing changes of +40.69% and +11.58%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Amazon. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.22% higher. Amazon is holding a Zacks Rank of #2 (Buy) right now.

Looking at valuation, Amazon is presently trading at a Forward P/E ratio of 42.97. For comparison, its industry has an average Forward P/E of 20.78, which means Amazon is trading at a premium to the group.

We can also see that AMZN currently has a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 0.53 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Amazon (AMZN) Gains As Market Dips: What You Should Know (2024)


What will AMZN stock be worth in 10 years? ›

Analysts at Coin Price Forecast do offer a 2034 projection for Amazon stock, estimating a 10-year price increase of 276%, to $672 per share.

What is the prediction for Amazon stock? ›

AMZN Stock 12 Month Forecast

Based on 42 Wall Street analysts offering 12 month price targets for Amazon in the last 3 months. The average price target is $213.74 with a high forecast of $235.00 and a low forecast of $200.00. The average price target represents a 18.11% change from the last price of $180.96.

What is Amazon stock prediction for 2024? ›

There are 44 'Buy' and one 'Hold' rating, with no analysts giving 'Sell' recommendations. The average one-year Amazon stock forecast 2024/2025, according to MarketBeat, is for the price to reach $202.80, with the highest projection being $235 and the lowest estimate standing at $140.

What if you invested $10,000 in Amazon 10 years ago? ›

As a result, an investment of $10,000 a decade ago would be worth over $107,000 today. The company made many millionaires over the last decade, begging the question: Does it still have much to offer new investors? Let's examine Amazon's business more closely and determine whether it's still worth investing in in 2024.

Is Amazon a good stock to hold forever? ›

Here's the bottom line: Amazon is an excellent stock to cash in on the rise of AI, e-commerce growth, and cloud computing. Long-term investors shouldn't go wrong with this robust, versatile business.

Has Amazon stock ever been $2,000? ›

Amazon stock hit $2,000 per share for the first time Thursday.

Where will Amazon stock be in 5 years? ›

Trading at around 50 times forward-looking earnings and a little less than 3 times its trailing-12-month sales, Amazon shares could be in the ballpark of $400 apiece in 2028.

What is Amazon stock predicted to be in 5 years? ›

Amazon Stock Prices By Trading View
YearLowest priceModerate price
Mar 20, 2024

Who owns the most Amazon stock? ›

Founder and former CEO Jeff Bezos is the largest Amazon shareholder, with more than 937 million shares, which represent a stake of about 9% in the company. Bezos' shares are worth an estimated $166 billion.

Is Amazon a buy or hold stock? ›

Amazon stock has received a consensus rating of buy. The average rating score is A1 and is based on 98 buy ratings, 2 hold ratings, and 0 sell ratings.

What is the highest Amazon stock has ever been? › ($3,515.29)

Will Amazon bounce back? ›

To this end, analysts collectively believe Amazon will be driving annual revenue of around $1 trillion by 2028. Most of that will still be e-commerce revenue, albeit boosted more by advertising's growth than the sale of more goods (although both will make meaningful contributions).

What will AMZN price be in 2025? ›

Amazon stock price stood at $179.62
8 more rows

Is Amazon a good investment in 2024? ›

Amazon stock (NASDAQ:AMZN) stock remains one of the top tech stocks to buy in 2024. The company remains a leader in the technology and retail landscape, and has a number of tailwinds to drive growth in the 2024 fiscal year.

What will AMZN be worth in 2040? ›

Amazon Stock Forecast for 2040 & 2050: Where Is AMZN Going?
AMZN stock forecast (5% annual growth rate)$188$410
AMZN stock forecast (S&P 500 avg. compound annualized return of 11.13%)$199$1,076
AMZN stock forecast (QTEC avg. annualized compound return of 15.2%)$206$1,983
Mar 25, 2024

What will Amazon be worth in 2040? ›

Amazon Stock Prices By Trading View
YearLowest priceThe highest price
Mar 20, 2024

How much would you have if you invested in Amazon 10 years ago? ›

As a result, an investment of $10,000 a decade ago would be worth over $107,000 today. The company made many millionaires over the last decade, begging the question: Does it still have much to offer new investors? Let's examine Amazon's business more closely and determine whether it's still worth investing in in 2024.


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