Amazon (AMZN) closed at $223.19 in the latest trading session, marking a -1.4% move from the prior day. This move lagged the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq increased by 0.26%.
Heading into today, shares of the online retailer had gained 5.37% over the past month, outpacing the Retail-Wholesale sector's gain of 3.84% and the S&P 500's gain of 4.51%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.32, marking a 7.32% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $162.17 billion, reflecting a 9.59% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.27 per share and a revenue of $695.72 billion, signifying shifts of +13.38% and +9.05%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.34% increase. As of now, Amazon holds a Zacks Rank of #2 (Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 36.1. This signifies a premium in comparison to the average Forward P/E of 21.64 for its industry.
It's also important to note that AMZN currently trades at a PEG ratio of 1.69. 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. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.63.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Amazon.com, Inc. (AMZN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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