Amazon (AMZN) Beats Stock Market Upswing: What Investors Need to Know

Amazon (AMZN) closed the latest trading day at $175.90, indicating a +0.81% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.39%.

The online retailer's shares have seen an increase of 2.93% over the last month, surpassing the Retail-Wholesale sector's gain of 2.73% and falling behind the S&P 500's gain of 2.97%.

The upcoming earnings release of Amazon will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.81, reflecting a 161.29% increase from the same 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 annual period, the Zacks Consensus Estimates anticipate earnings of $4.08 per share and a revenue of $641.36 billion, signifying shifts of +40.69% and +11.58%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Amazon. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.22% upward. As of now, Amazon holds a Zacks Rank of #2 (Buy).

Investors should also note Amazon's current valuation metrics, including its Forward P/E ratio of 42.74. This denotes a premium relative to the industry's average Forward P/E of 20.

Investors should also note that AMZN has a PEG ratio of 1.52 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.59.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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