Amazon (AMZN) closed the most recent trading day at $249.89, moving -1.99% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
The online retailer's stock has climbed by 7.35% in the past month, exceeding the Retail-Wholesale sector's gain of 0.51% and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.82, indicating a 8.33% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $196.9 billion, showing a 17.41% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.86 per share and a revenue of $826.06 billion, indicating changes of +23.57% and +15.22%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.39% rise in the Zacks Consensus EPS estimate. Currently, Amazon is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 28.76. Its industry sports an average Forward P/E of 17.09, so one might conclude that Amazon is trading at a premium comparatively.
It is also worth noting that AMZN currently has a PEG ratio of 1.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 31% 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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).