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Amazon (AMZN) Beats Stock Market Upswing: What Investors Need to Know

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Amazon (AMZN - Free Report) closed the most recent trading day at $216.48, moving +1.61% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.07%. On the other hand, the Dow registered a gain of 1.12%, and the technology-centric Nasdaq increased by 1.37%.

Coming into today, shares of the online retailer had lost 7.97% in the past month. In that same time, the Retail-Wholesale sector lost 5.23%, while the S&P 500 gained 1.08%.

Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2025. The company is forecasted to report an EPS of $1.6, showcasing a 11.89% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $177.96 billion, reflecting a 12.01% rise from the equivalent quarter last year.

AMZN's full-year Zacks Consensus Estimates are calling for earnings of $6.83 per share and revenue of $708.73 billion. These results would represent year-over-year changes of +23.51% and +11.09%, respectively.

Investors should also note any recent changes to analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.1% increase. Amazon is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note Amazon's current valuation metrics, including its Forward P/E ratio of 31.2. This denotes a premium relative to the industry average Forward P/E of 21.03.

Investors should also note that AMZN has a PEG ratio of 1.41 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.38 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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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