Amazon (AMZN - Free Report) closed the most recent trading day at $1,833.51, moving -0.39% from the previous trading session. This move lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.17%.
Heading into today, shares of the online retailer had gained 0.43% over the past month, lagging the Retail-Wholesale sector's gain of 8.32% and the S&P 500's gain of 4.92% in that time.
AMZN will be looking to display strength as it nears its next earnings release. On that day, AMZN is projected to report earnings of $4.41 per share, which would represent a year-over-year decline of 23.3%. Our most recent consensus estimate is calling for quarterly revenue of $68.52 billion, up 21.1% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $24.01 per share and revenue of $277.88 billion. These results would represent year-over-year changes of +19.22% and +19.32%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 1.5% lower within the past month. AMZN is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 76.65. Its industry sports an average Forward P/E of 25.03, so we one might conclude that AMZN is trading at a premium comparatively.
We can also see that AMZN currently has a PEG ratio of 2.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 1.57 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.