Amazon (AMZN) closed at $129.82 in the latest trading session, marking a +0.26% move from the prior day. This change lagged the S&P 500's 0.66% gain on the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the online retailer had lost 9.26% over the past month, lagging the Retail-Wholesale sector's loss of 2.55% and the S&P 500's loss of 3.79% in that time.
Wall Street will be looking for positivity from Amazon as it approaches its next earnings report date. The company is expected to report EPS of $0.26, down 16.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $128.19 billion, up 15.68% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.19 per share and revenue of $523.93 billion, which would represent changes of -94.14% and +11.52%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Amazon. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.29% higher within the past month. Amazon is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 666.85. For comparison, its industry has an average Forward P/E of 25.56, which means Amazon is trading at a premium to the group.
Meanwhile, AMZN's PEG ratio is currently 29.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce was holding an average PEG ratio of 1.24 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 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.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.
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
To read this article on Zacks.com click here.
Zacks Investment Research