Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
Amazon (AMZN) closed the most recent trading day at $3,306.99, moving +1.34% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.55%.
Heading into today, shares of the online retailer had gained 2.45% over the past month, outpacing the Retail-Wholesale sector's gain of 1.69% and lagging the S&P 500's gain of 3.99% in that time.
Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. This is expected to be February 2, 2021. In that report, analysts expect AMZN to post earnings of $7 per share. This would mark year-over-year growth of 8.19%. Our most recent consensus estimate is calling for quarterly revenue of $120.23 billion, up 37.5% from the year-ago period.
Investors might also notice recent changes to analyst estimates for AMZN. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. AMZN is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 72.89 right now. Its industry sports an average Forward P/E of 49.6, so we one might conclude that AMZN is trading at a premium comparatively.
It is also worth noting that AMZN currently has a PEG ratio of 2.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.57 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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