In the latest market close, Amazon (AMZN – Free Report) reached $199.25, with a -0.72% movement compared to the previous day. The stock’s performance was behind the S&P 500’s daily gain of 0.55%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.7%.
The the stock of online retailer has fallen by 15.97% in the past month, lagging the Retail-Wholesale sector’s loss of 7.03% and the S&P 500’s loss of 5.56%.
The upcoming earnings release of Amazon will be of great interest to investors. In that report, analysts expect Amazon to post earnings of $1.38 per share. This would mark year-over-year growth of 22.12%. At the same time, our most recent consensus estimate is projecting a revenue of $154.82 billion, reflecting an 8.03% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.32 per share and a revenue of $697.68 billion, signifying shifts of +14.29% and +9.36%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Amazon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.22% increase. At present, Amazon boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Amazon is presently being traded at a Forward P/E ratio of 31.75. This valuation marks a premium compared to its industry’s average Forward P/E of 21.95.
It’s also important to note that AMZN currently trades at a PEG ratio of 1.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. Internet – Commerce stocks are, on average, holding a PEG ratio of 1.15 based on yesterday’s closing prices.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.
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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