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Amazon (AMZN) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, Amazon (AMZN - Free Report) closed at $210.57, marking a +1.1% move from the previous day. This change outpaced the S&P 500's 0.72% gain on the day. Meanwhile, the Dow experienced a rise of 0.48%, and the technology-dominated Nasdaq saw an increase of 1.16%.
Shares of the online retailer witnessed a loss of 0.22% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 4.19%, and the S&P 500's loss of 4.99%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.69, marking a 6.29% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $177.64 billion, reflecting a 14.12% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.78 per share and revenue of $804.86 billion, which would represent changes of +8.51% and +12.27%, respectively, from the prior 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. As of now, Amazon holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Amazon is currently exchanging hands at a Forward P/E ratio of 26.78. This expresses a premium compared to the average Forward P/E of 15.63 of its industry.
Also, we should mention that AMZN has a PEG ratio of 1.56. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.91 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.
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Amazon (AMZN) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Amazon (AMZN - Free Report) closed at $210.57, marking a +1.1% move from the previous day. This change outpaced the S&P 500's 0.72% gain on the day. Meanwhile, the Dow experienced a rise of 0.48%, and the technology-dominated Nasdaq saw an increase of 1.16%.
Shares of the online retailer witnessed a loss of 0.22% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 4.19%, and the S&P 500's loss of 4.99%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.69, marking a 6.29% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $177.64 billion, reflecting a 14.12% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.78 per share and revenue of $804.86 billion, which would represent changes of +8.51% and +12.27%, respectively, from the prior 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. As of now, Amazon holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Amazon is currently exchanging hands at a Forward P/E ratio of 26.78. This expresses a premium compared to the average Forward P/E of 15.63 of its industry.
Also, we should mention that AMZN has a PEG ratio of 1.56. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.91 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.