Amazon (AMZN) closed the most recent trading day at $1,735.65, moving -0.01% from the previous trading session. This change was narrower than the S&P 500’s 1.23% loss on the day. Meanwhile, the Dow lost 1.28%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Prior to today’s trading, shares of the online retailer had lost 2.27% over the past month. This has lagged the Retail-Wholesale sector’s loss of 0.49% and the S&P 500’s gain of 1.95% in that time.
Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. The company is expected to report EPS of $4.41, down 23.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $68.52 billion, up 21.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.01 per share and revenue of $277.88 billion, which would represent changes of +19.22% and +19.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AMZN. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. AMZN is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AMZN currently has a Forward P/E ratio of 72.29. This represents a premium compared to its industry’s average Forward P/E of 25.98.
Meanwhile, AMZN’s PEG ratio is currently 2.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Internet – Commerce was holding an average PEG ratio of 1.51 at yesterday’s closing price.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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