Amazon (AMZN) closed at $3,236.08 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.84%.
Prior to today's trading, shares of the online retailer had gained 4.36% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.51% and the S&P 500's gain of 2.12% in that time.
Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. On that day, AMZN is projected to report earnings of $6.96 per share, which would represent year-over-year growth of 7.57%. Meanwhile, our latest consensus estimate is calling for revenue of $120.18 billion, up 37.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $34.56 per share and revenue of $380.71 billion. These totals would mark changes of +50.2% and +35.72%, respectively, from last year.
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.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. AMZN is currently a Zacks Rank #3 (Hold).
In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 93.79. For comparison, its industry has an average Forward P/E of 57.52, which means AMZN is trading at a premium to the group.
Meanwhile, AMZN's PEG ratio is currently 3.21. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.78 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 189, putting it in the bottom 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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