Amazon (AMZN) closed at $179.71, up 0.47% from the previous day. The stock outperformed the S&P 500's 0.31% daily loss. Meanwhile, the Dow fell 0.41% and the tech-heavy Nasdaq fell 0.27%. Online retailer stock has gained 2.22% in the past month, trailing the Retail-Wholesale sector's 2.43% and the S&P 500's 3.05%.
Amazon's earnings report will interest investors. The company is expected to generate $0.81 EPS, up 161.29% from last year's similar period. Our newest consensus estimate is $142.42 billion in revenue, up 11.83% from the year-ago quarter.
The Zacks Consensus Estimates predict $4.08 per share and $641.36 billion in revenue for the full year, up 40.69% and +11.58% over the previous year.
Investors should also consider Amazon analyst estimate changes. Recent changes reflect changing short-term business patterns. Thus, positive estimate changes indicate analyst optimism about the company's business and profitability.
These estimate revisions predict stock price performance, according to empirical research. We created the Zacks Rank, an exclusive algorithm that uses predicted changes to provide an operational grading system
Starting at #1 (Strong Buy) and ending at #5 (Strong Sell), the Zacks Rank methodology has outperformed the market since 1988, with #1 stocks returning an average of +25% annually. The Zacks Consensus EPS projection rose 1.26% in 30 days. Amazon's Zacks Rank is #2 (Buy).
To value Amazon, its Forward P/E ratio is 43.82. This is higher than the industry average Forward P/E of 20.11.
AMZN's PEG ratio is 1.56. The PEG ratio, like the P/E ratio, considers the company's predicted profits growth. Yesterday's Internet-Commerce PEG ratio averaged 0.64. Internet commerce is part of Retail-Wholesale. The Zacks Industry Rank of 88 places this industry in the top 35% of 250+ industries.
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