Zacks analyst blog spotlights Amazon, Aspen, Analog Devices and Agilent
For immediate release
Chicago, IL – July 27, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Amazon AMZN, Aspen Technology AZPN, Analog Devices ADI, and Agilent Technologies A.
Here are the highlights from Tuesday’s analyst blog:
Will Amazon (AMZN) Q2 revenue benefit from AWS Momentum?
AmazonQ2 2022 results, due for release on July 28, are expected to reflect gains from bolstering its cloud service offerings.
The cloud computing division, Amazon Web Services (“AWS”), dominates the cloud market with its growing adoption and popularity. This should be reflected in the company’s second quarter results.
We note that AWS’ strong momentum has helped Amazon generate high margins from the cloud business. The trend is expected to continue in the quarter ahead.
AWS revenue was $18.4 billion, representing 16% of net sales in the first quarter of 2022, up 37% year-over-year. We further note that AWS operating profit improved 56.6% from the prior year quarter to $6.5 billion.
An expanding customer base and a strong discount offer for long-term agreements are likely to have boosted AWS revenue in the quarter under review.
Zacks consensus estimate for AWS net sales in Q2 2022 is set at $19.5 billion, indicating a 31.6% improvement over the reported figure for the prior year quarter .
Click on here to find out how the company’s overall results in the second quarter are likely to be.
Amazon.com, Inc. price-eps-surprise| Quote Amazon.com, Inc.
Factors to note
In Q2, Amazon expanded the cloud services portfolio by unveiling and making several AWS services generally available.
The company announced the general availability of AWS IoT TwinMaker, AWS Amplify Studio, Amazon Aurora Serverless v2, AWS Mainframe Modernization, and Graviton3 processor-based Amazon Elastic Compute Cloud C7g instances.
Notably, the strength of the portfolio likely helped AWS maintain its dominance in the cloud market by helping it maintain momentum among existing customers and attract new ones.
During the quarter under review, AWS was selected by Boeing as a strategic cloud provider. In an effort to advance aerospace design and manufacturing, Boeing will migrate its applications from on-premises data centers to AWS. Boeing will leverage AWS’s scalable, robust, and high-performance cloud infrastructure and services, including high-performance computing.
In addition to the strength of the portfolio, the strengthening of the data center network and the increase in the number of AWS regions around the world likely contributed to AWS’ performance in the second quarter in the global cloud computing market.
Zacks Ranking and Stocks to Consider
Currently, Amazon has a Zacks rank of #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector may consider some higher-ranked stocks like Aspen Technology, Analog devices and AgilentTechnologies, each carrying a Zacks Rank #2 (Buy) at present. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aspen Technology has returned 16.8% year-to-date. AZPN’s long-term earnings growth rate is currently projected at 18.4%.
Analog Devices has lost 11% since the start of the year. The company’s long-term earnings growth rate is currently projected at 12.3%.
Agilent Technologies has lost 27.9% since the start of the year. The company’s long-term earnings growth rate is currently projected at 10%.
Stay up to date with upcoming results announcements with the Zacks Earnings Schedule .
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor more information on the performance figures displayed in this press release.
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