In the latest trading session, Amazon (AMZN) closed at $3,350.44, marking a -1.69% move from the previous day. This move lagged the S&P 500's daily loss of 0.06%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the online retailer had lost 0.56% over the past month, lagging the Retail-Wholesale sector's gain of 2.21% and the S&P 500's gain of 5.76% in that time.
Wall Street will be looking for positivity from Amazon as it approaches its next earnings report date.
In that report, analysts expect Amazon to post earnings of $3.90 per share. This would mark a year-over-year decline of 72.32%. Our most recent consensus estimate is calling for quarterly revenue of $137.63 billion, up 9.62% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Amazon. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Amazon is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Amazon currently has a Forward P/E ratio of 66.27. This valuation marks a premium compared to its industry's average Forward P/E of 31.87.
It is also worth noting that AMZN currently has a PEG ratio of 2.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMZN's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.$Amazon.com(AMZN)$
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