In the latest trading session, Amazon (AMZN - Free Report) closed at $1,958.31, marking a -1.82% move from the previous day. The stock lagged the S&P 500's daily loss of 0.37%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.91%.
Heading into today, shares of the online retailer had gained 5.74% over the past month, outpacing the Retail-Wholesale sector's gain of 4.06% and the S&P 500's gain of 1.96% in that time.
AMZN will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. On that day, AMZN is projected to report earnings of $3.21 per share, which would represent year-over-year growth of 517.31%. Our most recent consensus estimate is calling for quarterly revenue of $56.92 billion, up 30.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.69 per share and revenue of $234.70 billion, which would represent changes of +288.79% and +31.95%, respectively, from the prior year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AMZN is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, AMZN currently has a Forward P/E ratio of 112.79. This represents a premium compared to its industry's average Forward P/E of 29.
Meanwhile, AMZN's PEG ratio is currently 4.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 2.03 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.