Amazon (AMZN) closed the most recent trading day at $248.24, moving -2.09% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
The online retailer’s shares have seen a decrease of 2.97% over the last month, surpassing the Retail-Wholesale sector’s loss of 5.39% and falling behind the S&P 500’s loss of 1.99%.
Investors will be eagerly watching for the performance of Amazon in its upcoming earnings disclosure. In that report, analysts expect Amazon to post earnings of $2.03 per share. This would mark year-over-year growth of 4.1%. Alongside, our most recent consensus estimate is anticipating revenue of $201.93 billion, indicating a 12.08% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.06 per share and a revenue of $829.39 billion, representing changes of +82.15% and +15.69%, respectively, from the prior year.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Amazon is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Amazon is presently being traded at a Forward P/E ratio of 19.42. Its industry sports an average Forward P/E of 16.74, so one might conclude that Amazon is trading at a premium comparatively.
It is also worth noting that AMZN currently has a PEG ratio of 1.21. 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. As of the close of trade yesterday, the Internet – Commerce industry held an average PEG ratio of 1.21.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 36% echelons of all 250+ industries.
