Amazon (AMZN) closed at $216.10 in the latest trading session, marking a +1.89% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.94%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%.
The online retailer's shares have seen an increase of 3.17% over the last month, surpassing the Retail-Wholesale sector's loss of 3.2% and the S&P 500's gain of 1.67%.
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 $1.31, showcasing a 6.5% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $161.79 billion, indicating a 9.33% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.17 per share and a revenue of $693.68 billion, signifying shifts of +11.57% and +8.73%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. Amazon is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Amazon is presently being traded at a Forward P/E ratio of 34.39. This denotes a premium relative to the industry average Forward P/E of 24.94.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.33 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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