Amazon (AMZN) closed the most recent trading day at $189.07, moving +1.36% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq added 1.26%.
The the stock of online retailer has fallen by 7.36% in the past month, lagging the Retail-Wholesale sector's loss of 3.18% and the S&P 500's loss of 4.77%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2025. The company is forecasted to report an EPS of $1.37, showcasing a 21.24% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $154.56 billion, showing a 7.85% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.26 per share and a revenue of $690.97 billion, demonstrating changes of +13.2% and +8.31%, respectively, from the preceding 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 past month, the Zacks Consensus EPS estimate has moved 0.89% lower. Amazon is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Amazon is currently exchanging hands at a Forward P/E ratio of 29.78. This valuation marks a premium compared to its industry's average Forward P/E of 23.5.
Also, we should mention that AMZN has a PEG ratio of 1.34. 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.38.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 145, finds itself in the bottom 42% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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