In the latest close session, Amazon (AMZN) was down 1.87% at $226.50. The stock's change was less than the S&P 500's daily gain of 0.19%. Elsewhere, the Dow gained 0.66%, while the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the online retailer had gained 0.75% over the past month, outpacing the Retail-Wholesale sector's loss of 1.45% and the S&P 500's gain of 0.54%.
Investors will be eagerly watching for the performance of Amazon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.97, marking a 5.91% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $211.29 billion, up 12.51% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.17 per share and revenue of $714.75 billion, indicating changes of +29.66% and 0%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. Right now, Amazon possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Amazon is at present trading with a Forward P/E ratio of 29.4. For comparison, its industry has an average Forward P/E of 17.55, which means Amazon is trading at a premium to the group.
It is also worth noting that AMZN currently has a PEG ratio of 1.45. 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 1.16 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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