Amazon (AMZN) closed at $3,486.90 in the latest trading session, marking a -0.07% move from the prior day. This change was narrower than the S&P 500’s 1.31% loss on the day.
Coming into today, shares of the online retailer had gained 7.44% in the past month. In that same time, the Retail-Wholesale sector gained 2.02%, while the S&P 500 gained 1.56%.
AMZN will be looking to display strength as it nears its next earnings release. On that day, AMZN is projected to report earnings of $12.16 per share, which would represent year-over-year growth of 18.06%. Meanwhile, our latest consensus estimate is calling for revenue of $115.05 billion, up 29.4% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $57.42 per share and revenue of $489.97 billion, which would represent changes of +37.27% and +26.92%, respectively, from the prior year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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 2.09% higher. AMZN is currently a Zacks Rank #3 (Hold).
In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 60.76. This valuation marks a premium compared to its industry’s average Forward P/E of 57.43.
Investors should also note that AMZN has a PEG ratio of 2.17 right now. 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 2.17 as of yesterday’s close.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% 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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