Amazon (AMZN) stock has delivered a more muted performance in 2026, but the options market suggests a near-term rally could be in store after the company's earnings on Oct. 29. Consensus is for Amazon to report $2.01 in earnings per share (EPS) for its third financial quarter, which would represent about a 3.08% increase on a year-over-year basis.
Heading into the quarterly event, Amazon shares are down more than 10% versus their YTD low.
Where Options Data Suggests Amazon Stock Is Headed
While 3% growth is far from extraordinary for a Magnificent 7 name, the derivatives market seems to believe it will prove sufficient to trigger a post-earnings pop in AMZN shares.
According to Barchart, the put-to-call ratio on options contracts expiring Nov. 6 sits at 0.40x at the time of writing, indicating a bullish ske; a reading below 1.00x is typically characterized as in favor of the bulls. The upper price on those contracts is set at $272 currently, signaling potential for a more than 7% surge through the end of next week.
That said, Amazon already trades at nearly 33x forward earnings, which makes it one of the more expensive Magnificent 7 stocks to own heading into 2027.
Mizuho Remains Bullish on AMZN Shares
Despite muted expected growth and an elevated valuation multiple, Mizuho analysts remain fully convinced that Amazon stock is a compelling buy heading into the earnings event.
In its latest research note, the investment firm maintained an “Outperform” rating on the tech titan, with its $330 price target indicating potential upside of about 30% from here.
According to Mizuho, North America Retail will likely come in soft as the company reports fiscal Q3 earnings on Thursday, but said continued strength in Amazon Web Services (AWS) will more than offset that potential weakness.
Plus, a positive update on capex discipline may help AMZN extend gains as well, its experts added.
What’s the Consensus Rating on Amazon?
Other Wall Street analysts are just as bullish on Amazon heading into its Q3 earnings.
The consensus rating on AMZN sits at “Strong Buy,” with the mean price target of $330 indicating significant upside potential from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.