Amazon (AMZN) closed the most recent trading day at $193.96, moving +0.04% from the previous trading session. This change lagged the S&P 500’s 0.25% gain on the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.56%.
Shares of the online retailer witnessed a gain of 10.47% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.28% and the S&P 500’s gain of 1.65%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. In that report, analysts expect Amazon to post earnings of $1.14 per share. This would mark year-over-year growth of 34.12%. Meanwhile, the latest consensus estimate predicts the revenue to be $157.05 billion, indicating a 9.76% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.74 per share and revenue of $634.49 billion, indicating changes of +63.45% and +10.39%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Amazon. Recent revisions tend to reflect the latest 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Amazon is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Amazon is currently exchanging hands at a Forward P/E ratio of 40.87. This denotes a premium relative to the industry’s average Forward P/E of 22.89.
Meanwhile, AMZN’s PEG ratio is currently 1.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. Internet – Commerce stocks are, on average, holding a PEG ratio of 1.05 based on yesterday’s closing prices.
The Internet – Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
