In the latest trading session, Amazon (AMZN) closed at $135.29, marking a -1.7% move from the previous day. This change lagged the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Coming into today, shares of the online retailer had gained 2.52% in the past month. In that same time, the Retail-Wholesale sector gained 0.93%, while the S&P 500 gained 1.85%.
Wall Street will be looking for positivity from Amazon as it approaches its next earnings report date. The company is expected to report EPS of $0.58, up 190% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $141.89 billion, up 11.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $570.79 billion. These totals would mark changes of +214.08% and +11.05%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amazon. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.53% higher. Amazon currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 61.67. For comparison, its industry has an average Forward P/E of 20.92, which means Amazon is trading at a premium to the group.
Investors should also note that AMZN has a PEG ratio of 1.82 right now. 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 0.77 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 72, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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