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Amazon (AMZN) Stock Moves -0.01%: What You Should Know

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Amazon (AMZN - Free Report) closed at $1,813.98 in the latest trading session, marking a -0.01% move from the prior day. This change lagged the S&P 500's daily of 0%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq gained 0.25%.

Prior to today's trading, shares of the online retailer had gained 6.96% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.45% and the S&P 500's gain of 2.36% in that time.

Investors will be hoping for strength from AMZN as it approaches its next earnings release. The company is expected to report EPS of $4.67, up 42.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $59.59 billion, up 16.75% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.93 per share and revenue of $275.58 billion. These totals would mark changes of +33.71% and +18.33%, respectively, from last year.

Investors might also notice 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.77% higher within the past month. AMZN is currently a Zacks Rank #3 (Hold).

Investors should also note AMZN's current valuation metrics, including its Forward P/E ratio of 67.38. This valuation marks a premium compared to its industry's average Forward P/E of 27.73.

We can also see that AMZN currently has a PEG ratio of 2.16. 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 2.16 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 30% 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.


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