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Amazon (AMZN) Surpasses Market Returns: Some Facts Worth Knowing
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Amazon (AMZN - Free Report) closed at $256.29 in the latest trading session, marking a +1.95% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.45%.
The online retailer's stock has dropped by 2.75% in the past month, exceeding the Retail-Wholesale sector's loss of 4.5% and lagging the S&P 500's gain of 0.84%.
Market participants will be closely following the financial results of Amazon in its upcoming release. The company is expected to report EPS of $2.02, up 3.59% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $202.01 billion, up 12.12% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.03 per share and a revenue of $829.29 billion, signifying shifts of +81.73% and +15.67%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.4% lower. As of now, Amazon holds a Zacks Rank of #3 (Hold).
Looking at valuation, Amazon is presently trading at a Forward P/E ratio of 19.29. This indicates a premium in contrast to its industry's Forward P/E of 14.69.
It is also worth noting that AMZN currently has a PEG ratio of 1.2. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.18.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 193, finds itself in the bottom 22% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.
View the Zacks #1 Rank List
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Amazon (AMZN) Surpasses Market Returns: Some Facts Worth Knowing
Amazon (AMZN - Free Report) closed at $256.29 in the latest trading session, marking a +1.95% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.45%.
The online retailer's stock has dropped by 2.75% in the past month, exceeding the Retail-Wholesale sector's loss of 4.5% and lagging the S&P 500's gain of 0.84%.
Market participants will be closely following the financial results of Amazon in its upcoming release. The company is expected to report EPS of $2.02, up 3.59% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $202.01 billion, up 12.12% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.03 per share and a revenue of $829.29 billion, signifying shifts of +81.73% and +15.67%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.4% lower. As of now, Amazon holds a Zacks Rank of #3 (Hold).
Looking at valuation, Amazon is presently trading at a Forward P/E ratio of 19.29. This indicates a premium in contrast to its industry's Forward P/E of 14.69.
It is also worth noting that AMZN currently has a PEG ratio of 1.2. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.18.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 193, finds itself in the bottom 22% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.