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Amazon (AMZN) Rises As Market Takes a Dip: Key Facts

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In the latest trading session, Amazon (AMZN - Free Report) closed at $189.07, marking a +0.04% move from the previous day. This move outpaced the S&P 500's daily loss of 0.18%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.27%.

Shares of the online retailer have depreciated by 1.36% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 4.46%.

Investors will be eagerly watching for the performance of Amazon in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 31, 2024. The company is expected to report EPS of $1.14, up 34.12% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $157.06 billion, indicating a 9.77% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.75 per share and a revenue of $634.46 billion, indicating changes of +63.79% and +10.38%, respectively, from the former year.

Any recent changes to analyst estimates for Amazon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% decrease. At present, Amazon boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Amazon is currently being traded at a Forward P/E ratio of 39.81. For comparison, its industry has an average Forward P/E of 23.63, which means Amazon is trading at a premium to the group.

Meanwhile, AMZN's PEG ratio is currently 1.44. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce was holding an average PEG ratio of 1.05 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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