Amazon (AMZN) closed the most recent trading day at $182.72, moving +1.06% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.97% for the day. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.45%.
Heading into today, shares of the online retailer had gained 3.08% over the past month, lagging the Retail-Wholesale sector’s gain of 7.36% and the S&P 500’s gain of 5.41% in that time.
The upcoming earnings release of Amazon will be of great interest to investors. The company is expected to report EPS of $1.14, up 34.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $157.05 billion, up 9.76% from the year-ago period.
AMZN’s full-year Zacks Consensus Estimates are calling for earnings of $4.74 per share and revenue of $634.38 billion. These results would represent year-over-year changes of +63.45% and +10.37%, respectively.
It is also important to note the recent changes to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape 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.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. At present, Amazon boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Amazon currently has a Forward P/E ratio of 38.12. Its industry sports an average Forward P/E of 23.92, so one might conclude that Amazon is trading at a premium comparatively.
It is also worth noting that AMZN currently has a PEG ratio of 1.38. 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. The Internet – Commerce industry currently had an average PEG ratio of 1 as of yesterday’s close.
The Internet – Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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