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Amazon (AMZN) Advances But Underperforms Market: Key Facts

The latest trading session saw Amazon (AMZN) ending at $175.42, denoting a +0.45% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.87%. Meanwhile, the Dow experienced a rise of 0.67%, and the technology-dominated Nasdaq saw an increase of 1.11%.

The the stock of online retailer has fallen by 2.37% in the past month, leading the Retail-Wholesale sector's loss of 3.67% and the S&P 500's loss of 3.97%.

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 April 30, 2024. In that report, analysts expect Amazon to post earnings of $0.82 per share. This would mark year-over-year growth of 164.52%. Simultaneously, our latest consensus estimate expects the revenue to be $142.53 billion, showing a 11.91% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.10 per share and revenue of $641.49 billion, indicating changes of +41.38% and +11.61%, respectively, compared to the previous year.

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Investors should also take note of any recent adjustments to analyst estimates for Amazon. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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 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. The Zacks Consensus EPS estimate has moved 0.38% higher within the past month. At present, Amazon boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Amazon currently has a Forward P/E ratio of 42.62. This signifies a premium in comparison to the average Forward P/E of 20.35 for its industry.

One should further note that AMZN currently holds a PEG ratio of 1.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.69 based on yesterday's closing prices.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

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Zacks Investment Research