Amazon (AMZN) closed at $1,900.30 in the latest trading session, marking a -1.23% move from the prior day. This change was narrower than the S&P 500’s daily loss of 1.71%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq lost 1.87%.
Heading into today, shares of the online retailer had lost 6.16% over the past month, lagging the Retail-Wholesale sector’s loss of 5.95% and outpacing the S&P 500’s loss of 9.13% in that time.
Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. On that day, AMZN is projected to report earnings of $6.43 per share, which would represent a year-over-year decline of 9.31%. Our most recent consensus estimate is calling for quarterly revenue of $72.29 billion, up 21.09% from the year-ago period.
AMZN’s full-year Zacks Consensus Estimates are calling for earnings of $27.61 per share and revenue of $334.20 billion. These results would represent year-over-year changes of +19.99% and +19.14%, respectively.
Investors should also note any recent changes to analyst estimates for AMZN. These revisions help to show the ever-changing nature 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. AMZN is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 69.68 right now. Its industry sports an average Forward P/E of 27.19, so we one might conclude that AMZN is trading at a premium comparatively.
Meanwhile, AMZN’s PEG ratio is currently 2.58. 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. Internet – Commerce stocks are, on average, holding a PEG ratio of 1.28 based on yesterday’s closing prices.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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