In the latest trading session, Amazon (AMZN – Free Report) closed at $222.15, marking a +0.02% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.
The online retailer’s stock has dropped by 1.3% in the past month, exceeding the Retail-Wholesale sector’s loss of 4.84% and the S&P 500’s loss of 2.8%.
The upcoming earnings release of Amazon will be of great interest to investors. The company’s earnings per share (EPS) are projected to be $1.53, reflecting a 51.49% increase from the same quarter last year. 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.
Investors might also notice recent changes to analyst estimates for Amazon. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.78% higher within the past month. Currently, Amazon is carrying a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Amazon currently has a Forward P/E ratio of 35.12. For comparison, its industry has an average Forward P/E of 21.6, which means Amazon is trading at a premium to the group.
One should further note that AMZN currently holds a PEG ratio of 1.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. AMZN’s industry had an average PEG ratio of 1.2 as of yesterday’s close.
The Internet – Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 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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