Amazon (AMZN) closed at $212.77 in the latest trading session, marking a +2.06% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.11%. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 1.43%.
The stock of online retailer has risen by 3.72% in the past month, leading the Retail-Wholesale sector's gain of 0.9% and undershooting the S&P 500's gain of 3.92%.
The upcoming earnings release of Amazon will be of great interest to investors. The company's upcoming EPS is projected at $1.31, signifying a 6.50% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $161.79 billion, up 9.33% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.22 per share and a revenue of $694.13 billion, representing changes of +12.48% and +8.8%, respectively, from the prior year.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 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 witnessed a 0.47% increase. As of now, Amazon holds a Zacks Rank of #3 (Hold).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 33.53. This indicates a premium in contrast to its industry's Forward P/E of 25.14.
One should further note that AMZN currently holds a PEG ratio of 1.57. 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. AMZN's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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