Amazon (AMZN) closed at $246.29 in the latest trading session, marking a +1.96% move from the prior day. This move outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.44%.
Prior to today's trading, shares of the online retailer had gained 4.22% outpaced the Retail-Wholesale sector's gain of 1.61% and the S&P 500's gain of 0.86%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. The company is forecasted to report an EPS of $1.97, showcasing a 5.91% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $211.29 billion, reflecting a 12.51% rise from the equivalent quarter last year.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $7.17 per share and revenue of $714.75 billion. These results would represent year-over-year changes of +29.66% and 0%, respectively.
Investors might also notice recent changes to analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. Amazon is currently a Zacks Rank #2 (Buy).
In terms of valuation, Amazon is presently being traded at a Forward P/E ratio of 30.77. This signifies a premium in comparison to the average Forward P/E of 17.93 for its industry.
We can also see that AMZN currently has a PEG ratio of 1.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 1.16 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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