The latest trading session saw Amazon (AMZN) ending at $227.46, denoting a -0.66% adjustment from its last day's close. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.12%.
The online retailer's stock has climbed by 8.27% in the past month, exceeding the Retail-Wholesale sector's gain of 5.84% and the S&P 500's gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.50, signifying a 48.51% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $187.07 billion, up 10.06% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.19 per share and a revenue of $637.22 billion, representing changes of +78.97% and +10.86%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.44% upward. Amazon is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 44.1. This signifies a premium in comparison to the average Forward P/E of 26.67 for its industry.
It is also worth noting that AMZN currently has a PEG ratio of 1.56. 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. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.27.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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