In the latest trading session, Amazon (AMZN) closed at $227.63, marking a -1.66% move from the previous day. This change lagged the S&P 500's daily gain of 0.44%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.7%.
The stock of online retailer has risen by 1.15% in the past month, lagging the Retail-Wholesale sector's gain of 2.16% and the S&P 500's gain of 4.03%.
Investors will be eagerly watching for the performance of Amazon in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.57, signifying a 9.79% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $177.93 billion, up 11.99% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.76 per share and revenue of $707.29 billion. These totals would mark changes of +22.24% and +10.87%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.8% higher. Amazon currently has a Zacks Rank of #3 (Hold).
Investors should also note Amazon's current valuation metrics, including its Forward P/E ratio of 34.26. This indicates a premium in contrast to its industry's Forward P/E of 21.17.
Meanwhile, AMZN's PEG ratio is currently 1.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
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.
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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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