In the latest trading session, Amazon (AMZN – Free Report) closed at $227.05, marking a -0.87% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.04%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today’s trading, shares of the online retailer had gained 11.33% over the past month. This has outpaced the Retail-Wholesale sector’s gain of 2.87% and the S&P 500’s gain of 1.05% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. In that report, analysts expect Amazon to post earnings of $1.50 per share. This would mark year-over-year growth of 48.51%. In the meantime, our current consensus estimate forecasts the revenue to be $187.1 billion, indicating a 10.08% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.19 per share and a revenue of $637.25 billion, representing changes of +78.97% and +10.87%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Amazon is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Amazon’s current valuation metrics, including its Forward P/E ratio of 44.1. This denotes a premium relative to the industry’s average Forward P/E of 25.34.
It’s also important to note that AMZN currently trades at a PEG ratio of 1.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Internet – Commerce industry held an average PEG ratio of 1.31.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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