In the latest close session, Amazon (AMZN) was up +1.55% at $225.22. The stock outpaced the S&P 500's daily gain of 0.58%.
Coming into today, shares of the online retailer had lost 6.91% in the past month. In that same time, the Retail-Wholesale sector lost 2.75%, while the S&P 500 gained 3.68%.
Market participants will be closely following the financial results of Amazon in its upcoming release. On that day, Amazon is projected to report earnings of $1.57 per share, which would represent year-over-year growth of 9.79%. Our most recent consensus estimate is calling for quarterly revenue of $177.93 billion, up 11.99% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $6.76 per share and revenue of $707.4 billion. These results would represent year-over-year changes of +22.24% and +10.89%, respectively.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.36% rise in the Zacks Consensus EPS estimate. As of now, Amazon holds a Zacks Rank of #3 (Hold).
Digging into valuation, Amazon currently has a Forward P/E ratio of 32.82. This signifies a premium in comparison to the average Forward P/E of 21.43 for its industry.
Investors should also note that AMZN has a PEG ratio of 1.48 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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