Amazon (AMZN) Ascends While Market Falls: Some Facts to Note

In the latest trading session, Amazon (AMZN) closed at $223.31, reflecting a positive movement of +1.27% from its previous closing price. This performance stood in contrast to the broader market, as the S&P 500 encountered a minor decline of 0.09%. The Dow Jones Industrial Average saw a slight increase of 0.04%, while the tech-heavy Nasdaq composite dipped by 0.1%.

Leading up to this day, Amazon's stock had appreciated by 8.69% over the past month. During that same period, the Retail-Wholesale sector experienced a gain of 3.61%, despite the S&P 500 recording a loss of 0.29%.

Investors and market analysts are keenly awaiting the upcoming earnings report from Amazon. Projections indicate that the company is likely to report earnings per share (EPS) of $1.50, which would represent a substantial increase of 48.51% compared to the same quarter last year. Additionally, the consensus estimate for Amazon's revenue stands at $187.07 billion, reflecting a 10.06% rise from the same quarter in the previous year.

For the entire fiscal year, the Zacks Consensus Estimates suggest that analysts expect Amazon to achieve an annual EPS of $5.19 and total revenue of $637.22 billion. These figures would translate to increases of 78.97% and 10.86%, respectively, when compared to the previous year.

It is also worth noting that recent changes in analysts' estimates for Amazon could signal shifting business dynamics. Positive revisions in these estimates often indicate a favorable outlook for the company's financial health. Historical data has shown a strong correlation between adjustments in estimates and subsequent stock price movements.

The Zacks Rank is a proprietary model that encapsulates these estimate changes, offering a rating system for stocks. This system ranks stocks from #1 (Strong Buy) to #5 (Strong Sell) and boasts a notable record of performance. Stocks rated #1 have produced an average annual return of +25% since 1988, showcasing the effectiveness of this rating system. In the past 30 days, Amazon's consensus EPS estimate has risen by 0.44%, and the stock currently holds a Zacks Rank of #2 (Buy).

When considering valuation metrics, Amazon exhibits a Forward Price-to-Earnings (P/E) ratio of 42.47, which is higher than the industry average Forward P/E of 25.84. The stock also has a PEG (Price/Earnings to Growth) ratio of 1.5. The PEG ratio accounts for expected earnings growth, providing a more comprehensive view of valuation. For comparison, the average PEG ratio in the Internet - Commerce sector was recorded at 1.22 at the close of the market yesterday.

This industry, classified within the Retail-Wholesale sector, currently holds a Zacks Industry Rank of 129, placing it in the bottom 49% among over 250 industry groups. The Zacks Industry Rank assesses industry group strength by averaging the Zacks Rank of all stocks within those groups. This historical data suggests that industries in the top half tend to outperform those in the bottom half by a significant margin.

As investors track these critical stock metrics and assignments, performance indicators related to Amazon will likely remain in focus.

Amazon, Stocks, Market