Ticker Reports for October 27th
Amazon Earnings: What's Needed for a Breakout to New Highs?
Tech titan Amazon.com Inc. (NASDAQ: AMZN) heads into Thursday’s earnings with plenty on the line. Recent weeks have seen the stock move more sluggishly than usual, and shares were trading around $225 on Friday, Oct. 24, still capped below the stubborn $240 ceiling that has halted every rally since February. When we warned of a triple top taking shape, the stock was down about 6% from its September peak.
Investors will be forgiven for getting nervous with the stock essentially flat for the year, especially as the S&P 500 notched a fresh record on the morning of Oct. 24. To be fair, the bulls did step in to defend $210 the week before, the same level they held in August, but without a pop from this week’s earnings, the stock risks toppling over. So just what kind of report is needed to avoid this?
Wall Street Expects More Than Just an Earnings Beat
First and foremost, Wall Street will seek proof that Amazon’s three core growth engines, AWS, e-commerce, and advertising, are firing on all cylinders. After several steady quarters, expectations are high, and with a price-to-earnings ratio that’s been rising steadily all year, the company must do more than simply meet analyst expectations.
The good news is that the sentiment is overwhelmingly bullish. Earlier this month, the team at Goldman Sachs reiterated its Buy rating and $275 price target, citing strength in AWS and renewed AI demand. And both Stifel and Wedbush reiterated their Buy ratings on Oct. 24, with price targets ranging to $280, implying a targeted upside of some 25% from current levels.
Those targets assume that AWS growth will accelerate and consumer spending will remain healthy, especially after October’s Prime Day event. Strong post-event sales numbers would reassure investors that the recent uptick in inflation isn’t spooking consumers and suggest they’ll continue spending their way through the holidays.
Q4 guidance will also need to be confident. The holiday quarter is historically Amazon’s biggest, and upbeat commentary from leadership would go a long way to restoring bullish momentum. However, with a valuation starting to look just a bit stretched, even a modest miss could reinforce fears that Amazon’s rally has peaked.
Amazon Earnings Play: Aggressive vs. Cautious Approach
For investors, there are two obvious approaches ahead of earnings. The first is to buy now and bet on another Amazon earnings beat. The company has a multi-year streak of topping expectations, and more of the same this week should help fuel another leg higher.
For those on the sidelines considering this play, there’s added support from the broader risk-on sentiment that is firmly in place, and the fact that the major indices are all at, or near, record levels.
The second, and more cautious approach, is to wait for confirmation. A clean breakout above $240 with substantial volume would confirm the bulls are back in control, and given how lackluster Amazon has been in recent weeks, waiting to see the proof may be the safer move.
Amazon’s Fundamentals Are Strong—But Is That Enough?
While there might be two obvious plays for getting long, it’s hard to find a reason to bet against Amazon. It remains one of the strongest names in global tech, with unmatched scale and a healthy balance sheet. But great companies aren’t always great trades. With the bulls lacking the control they’ve had for so long, this week’s report will firmly test their conviction.
The fundamentals remain solid, there’s steady growth across their core markets, and several long-term tailwinds are in place. However, “solid” might not be enough to justify another move higher, at least in the short term. For Amazon’s rally to continue, and for the triple top to be firmly broken, this week’s earnings report must be exceptional. If it is, a run toward $280 by the end of the year is likely. If not, the wait for a decisive breakout will continue.
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Why Procter & Gamble Remains a Buy-and-Hold Favorite
Procter & Gamble (NYSE: PG) is a good bet for long-term total returns because its stock price is near the low end of its historical P/E range, its yield is near the high end of its range, and its FQ1 2026 results affirm its outlook for growth, cash flow, and capital returns.
What are total returns? Total returns are an investor's net gain, including dividends and share price increases. In this case, the stock yields approximately 2.75% as of late October and could rise by 25% or more over the coming years.
The stock price increase will be supported by its business quality and growth, which sustain a healthy balance sheet and robust capital return, including share repurchases.
Share repurchases are critical to this stock’s price outlook because they reduce the share count at a semi-aggressive pace each year and are unlikely to be suspended anytime soon.
The dividend is attractive enough, with a yield above 2.5%, but another factor supporting the stock's price outlook is the distribution increase outlook. Procter & Gamble is a Dividend King with 70 years of consecutive annual increases and the capacity to continue increasing the dividend for the foreseeable future.
Not only do share buybacks help offset the cost of distribution increases, but the payout ratio is reasonably low at 65%, aligning with peers, and earnings growth is forecast. The consensus figures reported by MarketBeat forecast a mid-single-digit EPS CAGR, slightly outpacing the revenue growth and aligning with the company’s dividend distribution growth rate.
Procter & Gamble Rises After Posting Solid Results
Procter & Gamble’s FQ1 results were solid, outperforming on the top and bottom lines for revenue growth of 3.0%. The gains were primarily due to FX translation and pricing increases, but all segments contributed, and organic growth is present in some. The Beauty and Grooming segments delivered organic growth, in addition to tailwinds, driving a 2% organic gain for the business.
Margin is another area of strength. The company experienced margin pressures but was able to mitigate them to a degree, leaving margins in better condition than expected. The net result is $5.4 billion in operating cash flow, $4.8 billion in net earnings, and a 3% increase in adjusted EPS that outperformed significantly. The $1.99 is nearly 500 basis points above the consensus and suggests the company’s guidance is cautious.
Procter & Gamble reaffirmed its earnings guidance, providing a range whose midpoint is slightly below the consensus estimate. The takeaway is that the company expects weakening in the upcoming quarters to offset the Q1 strengths. However, this forecast ignores signs of consumer resiliency seen in its own and other consumer-focused companies' earnings reports.
The likely outcome is that Procter & Gamble will outperform in the upcoming quarters, leading to improved guidance later in the year.
Institutional and Analyst Trends Align With a Bottom for PG Stock Price
Analysts and institutional trends suggest a bottom in the PG stock price. Analysts rate it as a Moderate Buy and expect it to move up by double digits, while institutions are also purchasing. They purchased stock at a pace of more than $2.50 per $1 sold this year and provide a solid support base, owning 65% of the stock. A move to the consensus target is significant as it puts the market on track for new highs likely to be reached in 2026.
The technical action is positive. The PG stock price jumped 2.5% in premarket trading on Oct. 24, confirming a bottom at $147. Assuming the market follows through on this signal, PG stock should continue to rise and regain support at the moving-average cluster. It could continue higher in this scenario, reaching $170 in early 2026 and all-time highs by the middle of next year. If not, PG stock will likely wallow near late October levels until a more potent catalyst emerges.
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Viking Therapeutics: High Risk, High Reward Play
Viking Therapeutics Inc. (NASDAQ: VKTX) stock is soaring after the company delivered its third-quarter earnings report. The clinical-stage biopharmaceutical company is not profitable and is not generating revenue. However, investors cheered the company’s news that Phase 3 trials for its injectable weight loss treatment, VK2735, are proceeding as scheduled.
It’s impossible to ignore the importance of the company’s dual GLP-1/GIP receptor agonist. The company has other drugs in its pipeline. For example, its VK2809 candidate is in Phase 2 trials to treat non-alcoholic steatohepatitis (NASH). It also has an oral drug, VK0214, which targets a rare genetic neurological disorder.
But none of these candidates have retail investors as excited as VK2735. VKTX stock is up more than 36% in the last three months after the company reported successful Phase 2 trials.
R&D Spending Rises as Phase 3 Trials Accelerate
As stated above, Viking is a pre-revenue company, so it doesn’t give investors much to go on by way of fundamental analysis. However, the company delivered a loss per share of 81 cents, which was greater than the loss of 67 cents per share that analysts expected.
So why is VKTX stock rising? It’s because the company announced it increased its research and development (R&D) spending to $90 million. The Phase 3 study is a 78-week study, so there is still significant cash burn to come. However, investors are willing to overlook that if they see a larger payout.
Viking Targets Massive GLP-1 Market Opportunity
The question is, how big is Viking's opportunity in the GLP-1 market? It’s easy to make the case that VK2735 may have the leading GLP-1 obesity drug candidate, not coming from Eli Lilly (NYSE: LLY) or Novo Nordisk (NYSE: NVO).
Analysts project that by 2029, more than 15 additional GLP-1 drugs could be on the market. At that time, the GLP-1 market is expected to be valued at over $157 billion. That leaves room for other competitors, who may be several years behind Viking. It’s also why some of the speculation into VKTX stock is being driven by hopes that the company may be an M&A target.
However, it still highlights the make-or-break feeling with VKTX stock. Any setbacks will be disastrous for retail investors who got into the stock early.
VKTX Stock: Know What You Own
Whether Viking Therapeutics is a meme stock may be in the eye of the beholder, or holder in this case. But investors should be clear-eyed about what the company is and is not.
For example, if the company successfully brings its GLP-1 injectable drug to market, it will generate revenue and be profitable. However, a 78-week study means that day is more than a year away, and once it arrives, profit will be further down the road.
That puts the stock in the speculative category, but it’s not a meme stock.
One reason is the institutional ownership, which is over 70%. Palantir (NASDAQ: PLTR), which is profitable and part of the S&P 500 and Nasdaq-100, still doesn’t have even 50% institutional ownership. So the fact that Viking is getting this much attention from institutions should provide confidence and put a floor on the stock price.
Analysts are also bullish on VKTX stock. The consensus price target is $86.50, which implies an upside of over 150% from its post-earnings price. MarketBeat shows that 15 analysts cover the stock, which is impressive for a pre-revenue biotech company.
However, it’s still possible that VK2735 will not be approved. Even if it does, the company will be entering a market that is starting to get crowded.
There’s still time to build your speculative position, but understand the risks involved and be prepared to cut your losses if the future results don’t align with the current optimism.
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