Over the last two weeks, the stock market has seen its steepest sell-off since last August.

The indices and many stocks recently hit new all-time highs, yet many have now traded to attractive oversold levels.

The damage to stocks has been across the board, including hitting some of the best businesses in the world.

Today’s HX Income idea is one of these companies.

One of the best companies of all time, it hit an all-time high in January. The company reported great numbers yet recently triggered our RSI "buy" signal.

Here is the idea…

The company is e-commerce and cloud computing giant Amazon.com, Inc. (NASDAQ: AMZN).

Founded in his garage in 1994 by Jeff Bezos, AMZN is one of the most incredible stories in the history of the internet, e-commerce, technology, and the stock market. We bet you likely bought something from them this week!

Like all great companies and stocks, their success has been built on massive earnings growth.

Here is a table showing their growth in earnings per share or “EPS” over the last decade…

The company has gone from breakeven to earning over $6 per share over this period.

While putting up this growth, the company has delivered an excellent track record of beating analyst expectations. Companies that beat estimates become great stocks.

Here is a table showing AMZN’s performance versus analyst EPS expectations over the last five years…

While they struggled in the post-COVID period like many of their technology and e-commerce peers, the company has been CRUSHING numbers in the last two years.

Companies that beat numbers like this will also force analysts to raise their estimates. Positive earnings revisions are the most potent driver of near-term stock price performance.

Here is a chart showing the share price along with the revisions for 2026 EPS estimates…

Since the numbers bottomed back in early 2023, they have moved straight up, and estimates for 2026 EPS have almost doubled. You can see that the stock did the same over that same period!

We are sure you already know that AMZN has been an amazing stock over the last few decades.

Here is the chart of the stock price over the last ten years…

The stock is up an amazing twenty-fold over this period. Note how this lines up with the incredible growth in EPS.

Look closely at the end of the chart, though, and you can see the stock has sold off steeply recently.

Here is a shorter-term chart along with a chart of our key technical indicator – the relative strength index or “RSI” …

Since hitting a new high of over $240 per share at the start of 2025, the stock sold down to below $200 recently.

This also resulted in it triggering our RSI "buy" signal by trading below a 30 RSI and back above that level.

Why did the stock trade off so steeply?

There isn't a good reason.

They reported results in early February, and it was another blowout number. They also raised guidance.

The stock sold off as there are building concerns about the return on the massive investments AMZN and the other big technology companies are making in AI. AMZN said they were raising their capital investment in 2025, and this may have concerned some investors.

Despite the increase in investment, the stock is trading at a level where it will see high single-digit free cash flow yields in the coming years.

We think the sell-off in the stock simply reflects the sell-off in the overall stock market.

AMZN stock also seldom triggers our RSI “buy” signal.

In the last five years, it has only triggered it 9 times, and here is how the stock has performed after those signals…

If you bought the stock, you made money more than three-quarters of the time, looking out three months. You also made a strong double-digit return.

Remember, though, that with our income strategy of selling put options, we don't need the stock to go up. We just need it to stop going down.

With a company with the kind of track record that AMZN has and the stock being this oversold, we think that is a great bet!

We are going to shop online for some income with AMZN puts…

(Please refer to our HX Income Primer for more information on “selling puts” and options in general.)