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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
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Amazon (AMZN - Free Report) closed at $178.22 in the latest trading session, marking a +0.83% move from the prior day. This change outpaced the S&P 500's 0.8% gain on the day. On the other hand, the Dow registered a gain of 0.23%, and the technology-centric Nasdaq increased by 1.14%.
Heading into today, shares of the online retailer had gained 10.97% over the past month, outpacing the Retail-Wholesale sector's gain of 2.63% and the S&P 500's gain of 5.2% in that time.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. On that day, Amazon is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 161.29%. Meanwhile, the latest consensus estimate predicts the revenue to be $142.39 billion, indicating a 11.8% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $641.11 billion. These totals would mark changes of +40% and +11.54%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amazon. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.81% higher. Amazon is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 43.5. This denotes a premium relative to the industry's average Forward P/E of 17.58.
We can also see that AMZN currently has a PEG ratio of 1.55. 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 had an average PEG ratio of 0.57 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
Amazon (AMZN - Free Report) closed at $178.22 in the latest trading session, marking a +0.83% move from the prior day. This change outpaced the S&P 500's 0.8% gain on the day. On the other hand, the Dow registered a gain of 0.23%, and the technology-centric Nasdaq increased by 1.14%.
Heading into today, shares of the online retailer had gained 10.97% over the past month, outpacing the Retail-Wholesale sector's gain of 2.63% and the S&P 500's gain of 5.2% in that time.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. On that day, Amazon is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 161.29%. Meanwhile, the latest consensus estimate predicts the revenue to be $142.39 billion, indicating a 11.8% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $641.11 billion. These totals would mark changes of +40% and +11.54%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amazon. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.81% higher. Amazon is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 43.5. This denotes a premium relative to the industry's average Forward P/E of 17.58.
We can also see that AMZN currently has a PEG ratio of 1.55. 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 had an average PEG ratio of 0.57 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.