Amazon (AMZN) closed at $129.18 in the latest trading session, marking a +1.45% move from the prior day. This change outpaced the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 7.23%.
Prior to today's trading, shares of the online retailer had gained 6.01% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.03% and the S&P 500's gain of 3.08% in that time.
Amazon will be looking to display strength as it nears its next earnings release. On that day, Amazon is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 240%. Meanwhile, our latest consensus estimate is calling for revenue of $131.47 billion, up 8.44% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.56 per share and revenue of $560.32 billion, which would represent changes of +119.72% and +9.02%, respectively, from the prior year.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Amazon is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Amazon currently has a Forward P/E ratio of 81.43. Its industry sports an average Forward P/E of 19.11, so we one might conclude that Amazon is trading at a premium comparatively.
Also, we should mention that AMZN has a PEG ratio of 2.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMZN's industry had an average PEG ratio of 0.96 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.
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