Amazon (AMZN) closed at $223.31 in the latest trading session, marking a +1.27% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.09%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.
Coming into today, shares of the online retailer had gained 8.69% in the past month. In that same time, the Retail-Wholesale sector gained 3.61%, while the S&P 500 lost 0.29%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.50, marking a 48.51% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $187.07 billion, reflecting a 10.06% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.19 per share and revenue of $637.22 billion. These totals would mark changes of +78.97% and +10.86%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.44% higher. Amazon presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 42.47. This represents a premium compared to its industry's average Forward P/E of 25.84.
It's also important to note that AMZN currently trades at a PEG ratio of 1.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Commerce industry stood at 1.22 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 129, this industry ranks in the bottom 49% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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