Amazon (AMZN) closed at $108.92 in the latest trading session, marking a +1.42% move from the prior day. This move outpaced the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the online retailer had lost 10.66% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.41% and the S&P 500's loss of 7.99% in that time.
Amazon will be looking to display strength as it nears its next earnings release. On that day, Amazon is projected to report earnings of $0.14 per share, which would represent a year-over-year decline of 81.58%. Our most recent consensus estimate is calling for quarterly revenue of $119.92 billion, up 6.05% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $0.53 per share and revenue of $524.96 billion. These results would represent year-over-year changes of -83.64% and +11.74%, respectively.
Investors should also note any recent changes to analyst estimates for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.92% lower within the past month. Amazon is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Amazon currently has a Forward P/E ratio of 203.22. For comparison, its industry has an average Forward P/E of 21.79, which means Amazon is trading at a premium to the group.
Also, we should mention that AMZN has a PEG ratio of 7.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.$Amazon.com(AMZN)$
Comments