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Amazon (AMZN) Surpasses Market Returns: Some Facts Worth Knowing
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Amazon (AMZN - Free Report) closed at $238.15 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.92%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 2.03%.
The the stock of online retailer has risen by 6.38% in the past month, leading the Retail-Wholesale sector's gain of 4.85% and the S&P 500's gain of 0.81%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. The company's earnings report is set to go public on February 6, 2025. It is anticipated that the company will report an EPS of $1.54, marking a 52.48% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $187.18 billion, indicating a 10.13% upward movement from the same quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.86% increase. Currently, Amazon is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Amazon is presently being traded at a Forward P/E ratio of 37.08. Its industry sports an average Forward P/E of 21.33, so one might conclude that Amazon is trading at a premium comparatively.
Meanwhile, AMZN's PEG ratio is currently 1.31. 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 currently had an average PEG ratio of 1.17 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Amazon (AMZN) Surpasses Market Returns: Some Facts Worth Knowing
Amazon (AMZN - Free Report) closed at $238.15 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.92%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 2.03%.
The the stock of online retailer has risen by 6.38% in the past month, leading the Retail-Wholesale sector's gain of 4.85% and the S&P 500's gain of 0.81%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. The company's earnings report is set to go public on February 6, 2025. It is anticipated that the company will report an EPS of $1.54, marking a 52.48% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $187.18 billion, indicating a 10.13% upward movement from the same quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.86% increase. Currently, Amazon is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Amazon is presently being traded at a Forward P/E ratio of 37.08. Its industry sports an average Forward P/E of 21.33, so one might conclude that Amazon is trading at a premium comparatively.
Meanwhile, AMZN's PEG ratio is currently 1.31. 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 currently had an average PEG ratio of 1.17 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.