Amazon (AMZN) Rises As Market Takes a Dip: Key Facts
In the latest market close, Amazon (AMZN) reached $179.71, with a +0.47% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.31%. Elsewhere, the Dow saw a downswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.27%.
The the stock of online retailer has risen by 2.22% in the past month, lagging the Retail-Wholesale sector's gain of 2.43% and the S&P 500's gain of 3.05%.
The upcoming earnings release of Amazon will be of great interest to investors. The company is predicted to post an EPS of $0.81, indicating a 161.29% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $142.42 billion, showing a 11.83% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.08 per share and a revenue of $641.36 billion, demonstrating changes of +40.69% and +11.58%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.26% increase. Right now, Amazon possesses a Zacks Rank of #2 (Buy).
Digging into valuation, Amazon currently has a Forward P/E ratio of 43.82. This signifies a premium in comparison to the average Forward P/E of 20.11 for its industry.
Also, we should mention that AMZN has a PEG ratio of 1.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.64.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
