Amazon (AMZN) closed at $127.51 in the latest trading session, marking a -0.24% move from the prior day. This move was narrower than the S&P 500’s daily loss of 1.07%. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the online retailer had lost 10.35% over the past month, lagging the Retail-Wholesale sector’s loss of 1.62% and the S&P 500’s loss of 3.49% 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 $0.29 per share. This would mark a year-over-year decline of 6.45%. Our most recent consensus estimate is calling for quarterly revenue of $128.19 billion, up 15.68% from the year-ago period.
AMZN’s full-year Zacks Consensus Estimates are calling for earnings of $0.19 per share and revenue of $523.93 billion. These results would represent year-over-year changes of -94.14% and +11.52%, respectively.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.29% higher. Amazon currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 658.3. This valuation marks a premium compared to its industry’s average Forward P/E of 26.87.
Also, we should mention that AMZN has a PEG ratio of 29.03. 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 1.28 at yesterday’s closing price.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 46% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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