Amazon (AMZN) closed the most recent trading day at $2,002.38, moving +0.22% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.44%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Heading into today, shares of the online retailer had gained 11.18% over the past month, outpacing the Retail-Wholesale sector's gain of 4.67% and the S&P 500's gain of 3.59% in that time.
Investors will be hoping for strength from AMZN as it approaches its next earnings release, which is expected to be October 25, 2018. On that day, AMZN is projected to report earnings of $3.21 per share, which would represent year-over-year growth of 517.31%. Our most recent consensus estimate is calling for quarterly revenue of $56.91 billion, up 30.09% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $17.27 per share and revenue of $234.82 billion. These results would represent year-over-year changes of +279.56% and +32.02%, respectively.
Investors should also note any recent changes to analyst estimates for AMZN. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AMZN is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, AMZN is holding a Forward P/E ratio of 115.71. Its industry sports an average Forward P/E of 31.29, so we one might conclude that AMZN is trading at a premium comparatively.
Also, we should mention that AMZN has a PEG ratio of 4.37. 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 2.36 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 202, putting it in the bottom 21% 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.
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.