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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know

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Amazon (AMZN - Free Report) closed the most recent trading day at $114.33, moving +0.73% from the previous trading session. This change outpaced the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.

Prior to today's trading, shares of the online retailer had lost 7.72% over the past month. This has lagged the Retail-Wholesale sector's loss of 2.34% and the S&P 500's loss of 6.59% 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 $0.14 per share. This would mark a year-over-year decline of 81.58%. Meanwhile, our latest consensus estimate is calling for revenue of $119.84 billion, up 5.97% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.53 per share and revenue of $524.22 billion. These totals would mark changes of -83.64% and +11.58%, respectively, from last year.

Any recent changes to analyst estimates for Amazon should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 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 4.43% lower. Amazon is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Amazon currently has a Forward P/E ratio of 214.76. For comparison, its industry has an average Forward P/E of 24.07, which means Amazon is trading at a premium to the group.

Meanwhile, AMZN's PEG ratio is currently 8.04. 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. AMZN's industry had an average PEG ratio of 1.2 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 200, which puts it in the bottom 21% 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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