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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
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Amazon (AMZN - Free Report) ended the recent trading session at $222.16, demonstrating a +1.08% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.
The online retailer's shares have seen a decrease of 4.03% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.76% and the S&P 500's gain of 2.87%.
The investment community will be paying close attention to the earnings performance of Amazon in its upcoming release. The company is forecasted to report an EPS of $1.57, showcasing a 9.79% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $177.93 billion, up 11.99% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.76 per share and revenue of $707.29 billion. These totals would mark changes of +22.24% and +10.87%, respectively, from last year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% increase. Currently, Amazon is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 32.53. This valuation marks a premium compared to its industry average Forward P/E of 22.36.
One should further note that AMZN currently holds a PEG ratio of 1.47. 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 average PEG ratio for the Internet - Commerce industry stood at 1.47 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
Amazon (AMZN - Free Report) ended the recent trading session at $222.16, demonstrating a +1.08% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.
The online retailer's shares have seen a decrease of 4.03% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.76% and the S&P 500's gain of 2.87%.
The investment community will be paying close attention to the earnings performance of Amazon in its upcoming release. The company is forecasted to report an EPS of $1.57, showcasing a 9.79% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $177.93 billion, up 11.99% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.76 per share and revenue of $707.29 billion. These totals would mark changes of +22.24% and +10.87%, respectively, from last year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% increase. Currently, Amazon is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 32.53. This valuation marks a premium compared to its industry average Forward P/E of 22.36.
One should further note that AMZN currently holds a PEG ratio of 1.47. 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 average PEG ratio for the Internet - Commerce industry stood at 1.47 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.