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Amazon (AMZN) Increases Despite Market Slip: Here's What You Need to Know
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Amazon (AMZN - Free Report) closed at $238.38 in the latest trading session, marking a +2.02% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.11%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.35%.
The online retailer's shares have seen an increase of 11.51% over the last month, surpassing the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 0.51%.
Market participants will be closely following the financial results of Amazon in its upcoming release. The company is predicted to post an EPS of $1.69, indicating a 6.29% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $177.64 billion, showing a 14.12% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.78 per share and revenue of $804.89 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 revisions help to show the ever-changing nature of near-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, 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. At present, Amazon boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Amazon is presently trading at a Forward P/E ratio of 30.04. This indicates a premium in contrast to its industry's Forward P/E of 16.22.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.75. 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 Internet - Commerce was holding an average PEG ratio of 0.93 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Amazon (AMZN) Increases Despite Market Slip: Here's What You Need to Know
Amazon (AMZN - Free Report) closed at $238.38 in the latest trading session, marking a +2.02% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.11%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.35%.
The online retailer's shares have seen an increase of 11.51% over the last month, surpassing the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 0.51%.
Market participants will be closely following the financial results of Amazon in its upcoming release. The company is predicted to post an EPS of $1.69, indicating a 6.29% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $177.64 billion, showing a 14.12% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.78 per share and revenue of $804.89 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 revisions help to show the ever-changing nature of near-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, 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. At present, Amazon boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Amazon is presently trading at a Forward P/E ratio of 30.04. This indicates a premium in contrast to its industry's Forward P/E of 16.22.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.75. 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 Internet - Commerce was holding an average PEG ratio of 0.93 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.