Amazon (AMZN) closed at $144.72 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Heading into today, shares of the online retailer had gained 7.24% over the past month, outpacing the Retail-Wholesale sector's loss of 0.13% and the S&P 500's gain of 0.19% in that time.
Amazon will be looking to display strength as it nears its next earnings release. On that day, Amazon is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 190%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $141.89 billion, up 11.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $570.79 billion. These totals would mark changes of +214.08% and +11.05%, respectively, from last year.
It is also important to note the 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 3.53% higher within the past month. Amazon is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 64.91. This valuation marks a premium compared to its industry's average Forward P/E of 21.02.
Meanwhile, AMZN's PEG ratio is currently 1.92. 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 was holding an average PEG ratio of 0.77 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 70, which puts it in the top 28% 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.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report