Amazon (AMZN) closed the most recent trading day at $84, moving -0.21% from the previous trading session. This change was narrower than the S&P 500’s 0.25% loss on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 5.91%.
Heading into today, shares of the online retailer had lost 11.85% over the past month, lagging the Retail-Wholesale sector’s loss of 4.16% and the S&P 500’s loss of 2.59% in that time.
Wall Street will be looking for positivity from Amazon as it approaches its next earnings report date. In that report, analysts expect Amazon to post earnings of $0.17 per share. This would mark a year-over-year decline of 87.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $145.5 billion, up 5.89% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.12 per share and revenue of $510.28 billion. These totals would mark changes of -103.7% and +8.61%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Amazon. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.66% lower. Amazon is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 122.32. This represents a premium compared to its industry’s average Forward P/E of 23.53.
Investors should also note that AMZN has a PEG ratio of 6.07 right now. 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. AMZN’s industry had an average PEG ratio of 1.26 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 94, which puts it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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