Amazon’s stock outperformed the broader market in August, and there are indications that it could do so again this September. A positive month for Amazon would mark its longest winning streak in 20 years, which has piqued Wall Street’s interest.
During the month of August, Amazon’s shares (ticker: AMZN) saw a 3.2% increase, making it the sixth consecutive month of gains and the longest winning streak since July 2011. This remarkable performance is particularly impressive considering the overall stock market, especially the tech sector. In August, the S&P 500 fell by 1.8%, and the Nasdaq, which has a heavy weighting in tech stocks, slid by 2.2%.
Investors are now preparing for a potentially difficult September as historical data shows that this month is typically the worst for the stock market. The S&P 500 has, on average, lost 1.1% during September for the past three years.
While other tech behemoth Apple (AAPL) tends to follow the overall market and often experiences a decline in September, Amazon tends to defy the trend. Although Amazon’s shares have seen declines in the past six Septembers, the overall historical data shows more positive performance, suggesting that Amazon might be poised for a win.
On average, Amazon has returned 6.6% during September, with its best performance occurring in 1997 when it gained a staggering 86%. This remarkable performance was recorded in the company’s first year of being listed on the stock market. Overall, 58% of Septembers have yielded positive results for Amazon’s stock.
Building on its impressive streak from the previous month, if Amazon’s stock can continue its upward trajectory in September, it will mark its longest winning streak since 2003 when it experienced gains from January through October.
It’s not just historical data that supports Amazon’s positive outlook; Wall Street is also bullish, albeit on a longer time scale. Nearly 50 analysts surveyed by FactSet have given Amazon an average “Buy” rating, with an average target stock price implying a gain of over 25% from current levels.
This should bring some reassurance to Amazon shareholders who may be concerned about the performance of the rest of their portfolio this month.