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Amazon (AMZN) Flat As Market Gains: What You Should Know

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Amazon (AMZN - Free Report) closed the most recent trading day at $3,523.16, making no change from the previous trading session. This change lagged the S&P 500's 0.31% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.48%.

Prior to today's trading, shares of the online retailer had lost 1.48% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 2.72% and lagged the S&P 500's loss of 0.04% 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 $3.90 per share. This would mark a year-over-year decline of 72.32%. Our most recent consensus estimate is calling for quarterly revenue of $137.63 billion, up 9.62% from the year-ago period.

AMZN's full-year Zacks Consensus Estimates are calling for earnings of $40.79 per share and revenue of $470.51 billion. These results would represent year-over-year changes of -2.49% and +21.87%, respectively.

Investors might also notice recent changes to analyst estimates for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 2.38% lower within the past month. Amazon is currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 86.38 right now. For comparison, its industry has an average Forward P/E of 54.33, which means Amazon is trading at a premium to the group.

It is also worth noting that AMZN currently has a PEG ratio of 3.5. 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 industry currently had an average PEG ratio of 2.56 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 11% 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.

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