Amazon (AMZN) closed at $231.00 in the latest trading session, marking a -3.4% move from the prior day. This change lagged the S&P 500's daily loss of 2.06%. On the other hand, the Dow registered a loss of 1.76%, and the technology-centric Nasdaq decreased by 2.39%.
Coming into today, shares of the online retailer had gained 4.68% in the past month. In that same time, the Retail-Wholesale sector gained 5.12%, while the S&P 500 gained 1.63%.
Market participants will be closely following the financial results of Amazon in its upcoming release. 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. In the meantime, our current consensus estimate forecasts the revenue to be $211.45 billion, indicating a 12.6% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.17 per share and revenue of $714.92 billion. These totals would mark changes of +29.66% and 0%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.2% upward. Amazon is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Amazon is currently being traded at a Forward P/E ratio of 30.4. This denotes a premium relative to the industry average Forward P/E of 16.94.
It is also worth noting that AMZN currently has a PEG ratio of 1.5. 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. The average PEG ratio for the Internet - Commerce industry stood at 1.09 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 185, placing it within the bottom 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
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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