In the latest trading session, Amazon (AMZN - Free Report) closed at $1,656.58, marking a +1.66% move from the previous day. This move outpaced the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.08%.
Heading into today, shares of the online retailer had lost 0.7% over the past month, outpacing the Retail-Wholesale sector's loss of 1.47% and the S&P 500's loss of 3.04% in that time.
Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. This is expected to be February 7, 2019. The company is expected to report EPS of $5.48, up 153.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $71.61 billion, up 18.46% from the year-ago period.
Investors should also note any recent changes to analyst estimates for AMZN. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.23% lower. AMZN is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, AMZN is holding a Forward P/E ratio of 61.78. This valuation marks a premium compared to its industry's average Forward P/E of 29.59.
Meanwhile, AMZN's PEG ratio is currently 2.29. 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. The Internet - Commerce industry currently had an average PEG ratio of 1.9 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 86, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.