Amazon (AMZN) Rises as Market Dips: Key Facts

In the latest trading session, Amazon (AMZN) closed at $189.07, showing a slight increase of +0.04% compared to the previous day. This performance stands in contrast to the S&P 500, which saw a decline of 0.18%. Additionally, the Dow Jones Industrial Average fell by 0.8%, while the Nasdaq, known for its tech focus, experienced a modest increase of 0.27%.

Over the last month, however, shares of the e-commerce giant have decreased by 1.36%. This decline has been steeper than the Retail-Wholesale sector, which recorded a gain of 3.95%, and the S&P 500's rise of 4.46% during the same period.

Looking ahead, investors are keenly awaiting Amazon's upcoming earnings announcement, scheduled for October 31, 2024. Analysts predict that the company will report earnings per share (EPS) of $1.14, which represents an impressive increase of 34.12% compared to the same quarter last year. Furthermore, current estimates suggest that revenue will reach $157.06 billion, signifying a growth rate of 9.77% relative to the prior year.

For the entire fiscal year, consensus estimates from analysts anticipate earnings of $4.75 per share with total revenue forecasted at $634.46 billion. These figures indicate year-over-year changes of +63.79% and +10.38%, respectively.

Changes in analyst estimates are critical for investors to monitor, as such updates often reflect the latest trends in the company's business operations. Upward revisions in estimates suggest a positive outlook on Amazon's profitability and overall health.

Research indicates that modifications in earnings estimates can be linked to stock price movements in the near term. To assist investors in making informed decisions, a proprietary model known as the Zacks Rank provides ratings based on these estimate adjustments. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has shown a strong track record of outperforming the market. For context, stocks rated #1 have delivered an impressive average annual return of +25% since 1988. Over the last month, Amazon's consensus EPS estimate has decreased slightly by 0.14%, resulting in a current Zacks Rank of #3 (Hold).

Examining its valuation, Amazon is trading at a Forward P/E ratio of 39.81, which is significantly higher than the average Forward P/E of 23.63 for its industry peers, indicating a premium valuation.

Additionally, Amazon's PEG ratio stands at 1.44. This ratio, similar to the P/E ratio, considers projected earnings growth. The average PEG ratio for the Internet - Commerce sector was 1.05 at the close of the last trading session.

The Internet - Commerce industry is categorized under the Retail-Wholesale sector, which holds a Zacks Industry Rank of 70, placing it in the top 28% of all over 250 industries.

The Zacks Industry Rank assesses the strength of various industry groups by evaluating the average Zacks Rank of stocks within them. Historical data shows that the top half of rated industries outperforms the bottom by a factor of two to one.

For more detailed stock metrics and updates, investors are encouraged to stay informed through reliable financial news platforms.

Amazon, Market, Earnings