Amazon (AMZN) closed the most recent trading day at $226.79, moving +2.49% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 1.38%.
The stock of online retailer has fallen by 0.64% in the past month, lagging the Retail-Wholesale sector's gain of 0.48% and the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of Amazon in its upcoming release. The company's upcoming EPS is projected at $1.97, signifying a 5.91% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $211.29 billion, indicating a 12.51% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $7.17 per share and a revenue of $713.67 billion, demonstrating changes of +29.66% and +11.87%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amazon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.39% 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 30.85. This expresses a premium compared to the average Forward P/E of 18.75 of its industry.
One should further note that AMZN currently holds a PEG ratio of 1.52. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.44 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 83, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
