The latest trading session saw Amazon (AMZN – Free Report) ending at $205.71, denoting a +1.21% adjustment from its last day’s close. This move outpaced the S&P 500’s daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.01%, while the tech-heavy Nasdaq appreciated by 0.46%.
Prior to today’s trading, shares of the online retailer had lost 4.44% over the past month. This has was narrower than the Retail-Wholesale sector’s loss of 5.51% and lagged the S&P 500’s loss of 3.59% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $1.38, reflecting a 22.12% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $154.82 billion, up 8.03% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.32 per share and revenue of $697.68 billion. These totals would mark changes of +14.29% and +9.36%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. Amazon is currently a Zacks Rank #3 (Hold).
Investors should also note Amazon’s current valuation metrics, including its Forward P/E ratio of 32.16. Its industry sports an average Forward P/E of 22.42, so one might conclude that Amazon is trading at a premium comparatively.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Internet – Commerce industry had an average PEG ratio of 1.3 as trading concluded yesterday.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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