Why One Stock System Is Giving Amazon Stock a 'Buy' Signal

Good news for Amazon (AMZN) stock watchers! According to a popular stock ranking system called the Zacks Rank, Amazon's shares are looking promising right now. The system has given AMZN a high rating, specifically a Zacks Rank #2, which translates to a "Buy" recommendation. So, what does that mean? The Zacks Rank is a method used by analysts to predict how well a stock might perform in the near future. It uses different factors to assign a rank from #1 (Strong Buy) down to #5 (Strong Sell). Getting a #2 rank is a strong positive signal, suggesting that Amazon stock is expected to do better than the average stock in the market. Beyond just the overall rank, Amazon also received a positive score for its "Momentum." This score looks at recent price trends to see if a stock is moving in a favorable direction. Amazon earned a 'B' for Momentum, which indicates its recent stock price movement has been strong and positive. Combining the strong Zacks Rank with the positive Momentum score suggests that, based on this particular system, Amazon stock is seen as a potentially good investment right now, showing both overall strength and favorable recent trends.