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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know

Amazon (AMZN) closed the most recent trading day at $3,400, moving +0.61% from the previous trading session. This change outpaced the S&P 500's 0.33% gain on the day.

Heading into today, shares of the online retailer had gained 9.15% over the past month, outpacing the Retail-Wholesale sector's gain of 1.31% and the S&P 500's gain of 4.77% in that time.

Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. On that day, AMZN is projected to report earnings of $9.89 per share, which would represent year-over-year growth of 97.41%. Our most recent consensus estimate is calling for quarterly revenue of $105.05 billion, up 39.23% from the year-ago period.

AMZN's full-year Zacks Consensus Estimates are calling for earnings of $49.53 per share and revenue of $472.4 billion. These results would represent year-over-year changes of +18.41% and +22.36%, respectively.

Investors should also note any recent changes to analyst estimates for AMZN. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.84% higher. AMZN currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 68.13 right now. This represents a premium compared to its industry's average Forward P/E of 63.64.

Investors should also note that AMZN has a PEG ratio of 2.53 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 2.39 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 216, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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