The latest trading session saw Amazon (AMZN) ending at $227.46, denoting a -0.66% adjustment from its last day’s close. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.12%.
The online retailer’s stock has climbed by 8.27% in the past month, exceeding the Retail-Wholesale sector’s gain of 5.84% and the S&P 500’s gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $1.50, signifying a 48.51% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $187.07 billion, up 10.06% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.19 per share and a revenue of $637.22 billion, representing changes of +78.97% and +10.86%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.44% upward. Amazon is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 44.1. This signifies a premium in comparison to the average Forward P/E of 26.67 for its industry.
It is also worth noting that AMZN currently has a PEG ratio of 1.56. 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. As of the close of trade yesterday, the Internet – Commerce industry held an average PEG ratio of 1.27.
The Internet – Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.
