Zacks Equity Research
·3 min read
Amazon (AMZN) closed the most recent trading day at $176.56, moving +0.66% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.54%.
The online retailer's shares have seen an increase of 4% over the last month, surpassing the Retail-Wholesale sector's gain of 2.94% and the S&P 500's gain of 3.18%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. The company is predicted to post an EPS of $0.81, indicating a 161.29% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $142.42 billion, up 11.83% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.08 per share and a revenue of $641.36 billion, representing changes of +40.69% and +11.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Amazon. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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 moved 1.22% higher. Amazon is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Amazon is presently trading at a Forward P/E ratio of 42.97. For comparison, its industry has an average Forward P/E of 20.78, which means Amazon is trading at a premium to the group.
We can also see that AMZN currently has a PEG ratio of 1.53. 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 Internet - Commerce industry currently had an average PEG ratio of 0.53 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 Gains As Market Dips: What You Should Know (2024))
