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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
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Amazon (AMZN - Free Report) closed the most recent trading day at $2,442.37, moving +1.72% from the previous trading session. This change outpaced the S&P 500's 0.48% gain on the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.29%.
AMZN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.56, down 70.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $80.54 billion, up 27.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.66 per share and revenue of $345.15 billion, which would represent changes of -14.56% and +23.04%, respectively, from the prior year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 29.55% lower. AMZN is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, AMZN currently has a Forward P/E ratio of 122.14. Its industry sports an average Forward P/E of 42.28, so we one might conclude that AMZN is trading at a premium comparatively.
Also, we should mention that AMZN has a PEG ratio of 5.09. 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 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 28, putting it in the top 12% 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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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
Amazon (AMZN - Free Report) closed the most recent trading day at $2,442.37, moving +1.72% from the previous trading session. This change outpaced the S&P 500's 0.48% gain on the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.29%.
AMZN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.56, down 70.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $80.54 billion, up 27.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.66 per share and revenue of $345.15 billion, which would represent changes of -14.56% and +23.04%, respectively, from the prior year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 29.55% lower. AMZN is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, AMZN currently has a Forward P/E ratio of 122.14. Its industry sports an average Forward P/E of 42.28, so we one might conclude that AMZN is trading at a premium comparatively.
Also, we should mention that AMZN has a PEG ratio of 5.09. 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 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 28, putting it in the top 12% 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.