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Amazon (AMZN - Free Report) closed at $247.04 in the latest trading session, marking a +1.4% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.81%. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 1.3%.
Prior to today's trading, shares of the online retailer had gained 2.36% outpaced the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 1.13%.
Market participants will be closely following the financial results of Amazon in its upcoming release. The company is predicted to post an EPS of $1.82, indicating a 8.33% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $196.9 billion, reflecting a 17.41% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.86 per share and a revenue of $826.36 billion, representing changes of +23.57% and +15.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.39% higher within the past month. Amazon is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 27.48. Its industry sports an average Forward P/E of 16.7, so one might conclude that Amazon is trading at a premium comparatively.
Investors should also note that AMZN has a PEG ratio of 1.59 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.04.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
View the Zacks #1 Rank List
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Amazon (AMZN) Laps the Stock Market: Here's Why
Amazon (AMZN - Free Report) closed at $247.04 in the latest trading session, marking a +1.4% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.81%. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 1.3%.
Prior to today's trading, shares of the online retailer had gained 2.36% outpaced the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 1.13%.
Market participants will be closely following the financial results of Amazon in its upcoming release. The company is predicted to post an EPS of $1.82, indicating a 8.33% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $196.9 billion, reflecting a 17.41% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.86 per share and a revenue of $826.36 billion, representing changes of +23.57% and +15.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.39% higher within the past month. Amazon is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 27.48. Its industry sports an average Forward P/E of 16.7, so one might conclude that Amazon is trading at a premium comparatively.
Investors should also note that AMZN has a PEG ratio of 1.59 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.04.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.