Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Amazon (AMZN) closed at $1,768.33, marking a +1.53% move from the previous day. This change outpaced the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.05%.
Coming into today, shares of the online retailer had lost 1.15% in the past month. In that same time, the Retail-Wholesale sector gained 2.71%, while the S&P 500 gained 3.85%.
AMZN will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMZN to post earnings of $4.41 per share. This would mark a year-over-year decline of 23.3%. Meanwhile, our latest consensus estimate is calling for revenue of $68.52 billion, up 21.1% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.01 per share and revenue of $277.88 billion. These totals would mark changes of +19.22% and +19.32%, respectively, from last year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. AMZN is currently a Zacks Rank #3 (Hold).
In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 72.53. This represents a premium compared to its industry's average Forward P/E of 28.16.
Also, we should mention that AMZN has a PEG ratio of 2.21. 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. AMZN's industry had an average PEG ratio of 1.54 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming 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.