Amazon (AMZN) closed the most recent trading day at $3,469.15, moving -0.43% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.77%.
Coming into today, shares of the online retailer had gained 5.47% in the past month. In that same time, the Retail-Wholesale sector gained 0.63%, while the S&P 500 gained 1.55%.
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 $8.72 per share, which would represent a year-over-year decline of 29.51%. Meanwhile, our latest consensus estimate is calling for revenue of $111.73 billion, up 16.21% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $52.18 per share and revenue of $475.86 billion, which would represent changes of +24.74% and +23.26%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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 remained stagnant within the past month. AMZN is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 66.77. Its industry sports an average Forward P/E of 49.53, 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 2.42. 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 was holding an average PEG ratio of 2.42 at yesterday’s closing price.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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