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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know

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Amazon (AMZN - Free Report) closed at $1,850 in the latest trading session, marking a +0.69% move from the prior day. This move outpaced the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.19%.

Coming into today, shares of the online retailer had gained 13% in the past month. In that same time, the Retail-Wholesale sector gained 3.62%, while the S&P 500 gained 3.84%.

Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. On that day, AMZN is projected to report earnings of $4.61 per share, which would represent year-over-year growth of 40.98%. Our most recent consensus estimate is calling for quarterly revenue of $59.65 billion, up 16.86% from the year-ago period.

AMZN's full-year Zacks Consensus Estimates are calling for earnings of $26.66 per share and revenue of $275.59 billion. These results would represent year-over-year changes of +32.37% and +18.34%, respectively.

It is also important to note the recent changes to analyst estimates for AMZN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.84% higher within the past month. AMZN is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note AMZN's current valuation metrics, including its Forward P/E ratio of 68.92. This valuation marks a premium compared to its industry's average Forward P/E of 27.71.

Meanwhile, AMZN's PEG ratio is currently 2.21. 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 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 203, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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