Yahoo Finanza Amazon (AMZN) Surpasses Market Returns: Some Facts Worth Knowing
In the latest market close, Amazon (AMZN) reached $187, with a +1.34% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1%.
Shares of the online retailer have appreciated by 8.48% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 7.86% and the S&P 500's gain of 4.03%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. The company is expected to report EPS of $1.15, up 35.29% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $157.05 billion, indicating a 9.76% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.74 per share and a revenue of $634.49 billion, indicating changes of +63.45% and +10.39%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Amazon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.48% rise in the Zacks Consensus EPS estimate. Amazon is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 38.9. This signifies a premium in comparison to the average Forward P/E of 22.42 for its industry.
We can also see that AMZN currently has a PEG ratio of 1.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce industry had an average PEG ratio of 1.17 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
