Amazon (AMZN) has a “Perfect 10” Smart Score on TipRanks, which implies that the stock has the potential to beat the benchmark index. It is worth highlighting that Amazon stock is up over 42% over one year, outperforming the S&P 500’s (SPX) nearly 32% gain.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Before we continue, let’s take a moment to understand how TipRanks calculates a Smart Score for stocks. Based on eight key market factors, including analyst ratings, and technical analysis, among others, the potential of a stock is evaluated. After considering these factors, a Smart Score between 1 and 10 is assigned to the stock, with 10 being the highest score.
Factors Supporting AMZN’s Top Smart Score
Interestingly, Amazon stock has received a “Perfect 10” Smart Score, as it met the requirements for six out of the eight parameters. The stock has received a positive signal from hedge funds. Our data shows that hedge funds bought about 2.1 million shares of the company in the last quarter. The stock also enjoys bullish Blogger sentiment and Positive News Sentiment on TipRanks.
Furthermore, AMZN’s Strong Buy consensus rating on TipRanks is another factor supporting its top Smart Score. It is worth highlighting that three Top-rated analysts have reiterated their Buy ratings on AMZN so far this week.
Among the bullish analysts, TD Cowen analyst John Blackledge is optimistic about AMZN’s revenue growth prospects and the robust performance of its businesses, such as AWS and advertising. (To see Blackledge’s track record, click here.)
What Is the Price Target for AMZN?
Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 43 Buys and two Holds assigned in the last three months. At $223.43, the average Amazon price target implies a 22.28% upside potential.
