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In the latest market close, Amazon (AMZN - Free Report) reached $176.82, with a +1.91% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq appreciated by 1.51%.
Shares of the online retailer witnessed a gain of 1.75% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.93% and the S&P 500's gain of 3.21%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.81, marking a 161.29% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $142.39 billion, showing a 11.8% escalation compared to the year-ago quarter.
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.
Any recent changes to analyst estimates for Amazon should also be noted by investors. Such recent modifications usually signify the changing landscape 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.76% increase. Currently, Amazon is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Amazon currently has a Forward P/E ratio of 42.7. This denotes a premium relative to the industry's average Forward P/E of 19.57.
It is also worth noting that AMZN currently has a PEG ratio of 1.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Commerce industry stood at 0.54 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 144, which puts 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why Amazon (AMZN) Outpaced the Stock Market Today
In the latest market close, Amazon (AMZN - Free Report) reached $176.82, with a +1.91% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq appreciated by 1.51%.
Shares of the online retailer witnessed a gain of 1.75% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.93% and the S&P 500's gain of 3.21%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.81, marking a 161.29% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $142.39 billion, showing a 11.8% escalation compared to the year-ago quarter.
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.
Any recent changes to analyst estimates for Amazon should also be noted by investors. Such recent modifications usually signify the changing landscape 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.76% increase. Currently, Amazon is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Amazon currently has a Forward P/E ratio of 42.7. This denotes a premium relative to the industry's average Forward P/E of 19.57.
It is also worth noting that AMZN currently has a PEG ratio of 1.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Commerce industry stood at 0.54 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 144, which puts 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.