In the last trading session, Amazon (AMZN) closed at USD 2,954.91, a movement of -1.79% from the previous day. That change lagged the S&P 500’s 1.12% daily loss. Elsewhere, the Dow lost 0.88% while the tech-heavy Nasdaq lost 1.07%.
To date, the online retailer’s shares were down 8.75% in the past month. At the same time, the retail and wholesale sectors lost 1.2% while the S&P 500 lost 0.59%.
Wall Street will expect a positive outlook from AMZN as it nears its next earnings report. In this report, analysts expect AMZN to post earnings of $ 7.50 per share. This would mean a growth of 77.3% compared to the previous year. The Zacks Consensus estimate for sales predicts net sales of $ 92.78 billion, up 32.58% from the same period last year.
Looking at the full year, our Zacks consensus estimates expect analysts to expect earnings of $ 31.92 per share and revenue of $ 369.75 billion. These total numbers would mean changes of + 38.72% and + 31.81% compared to the previous year.
Investors should also be aware of the latest changes in analyst estimates for AMZN. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can view positive estimates as a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimates are directly related to team-based stock movements. Investors can take advantage of this with the help of the Zacks range. This model takes these changes in estimates into account and provides a simple, actionable rating system.
The Zacks Rank system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable externally verified track record: Stock # 1 has been delivering an average annual return of + 25% since 1988. Last month, Zack’s Consensus EPS estimate was down 0.25%. AMZN currently has a Zacks rank 3 (Hold).
Investors should also refer to AMZN’s most recent valuation metrics, including its Forward P / E ratio of 94.26. That’s a premium compared to the industry’s average Forward P / E of 47.74.
AMZN’s PEG ratio is currently 3.13. This popular metric is similar to the widely known P / E ratio, except that the P / E ratio also takes into account the company’s expected earnings growth rate. Internet commerce stocks hold an average PEG rate of 3.13 based on yesterday ‘s closing prices.
The internet commerce industry is part of the retail wholesale sector. This group has a Zacks industry ranking of 96 and is therefore in the top 38% of all over 250 industries.
Zacks Industry Rank measures the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within the groups. Our research shows that the industries with the top 50% outperform the bottom half by a factor of 2 to 1.
Make sure you use zacks. Com to keep track of all these and other metrics related to stock movement in the upcoming trading sessions.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
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