Amazon (AMZN) Increases While Market Declines: Important Details

In the most recent trading session, Amazon (AMZN) closed at $189.07, reflecting a minor gain of +0.04% from the previous day's closing. This performance also outperformed the S&P 500, which reported a loss of 0.18%. Additionally, the Dow Jones Industrial Average faced a decline of 0.8%, whereas the tech-heavy Nasdaq Composite increased by 0.27%.

Over the past month, Amazon shares experienced a decline of 1.36%. This performance falls short compared to the Retail-Wholesale sector, which observed a gain of 3.95%, and the S&P 500’s rise of 4.46%.

Investors are keenly anticipating Amazon's upcoming earnings report, scheduled for release on October 31, 2024. Analysts predict that the company will report earnings per share (EPS) of $1.14, a significant increase of 34.12% compared to the same quarter last year. Revenue expectations are set at $157.06 billion, marking a growth of 9.77% from the equivalent quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates suggest that Amazon's earnings will reach $4.75 per share, with total revenue projected at $634.46 billion. These figures represent a year-over-year change of +63.79% in earnings and +10.38% in revenue.

Investors should keep an eye on any changes to analyst estimates related to Amazon, as such revisions reflect recent business trends. Positive adjustments in estimates often indicate a favorable outlook on the company's health and potential profitability.

Research indicates that these estimate changes are closely linked to stock performance in the near future. To help investors, a tool called the Zacks Rank has been developed, which incorporates these estimation changes into an actionable rating system.

The Zacks Rank operates on a scale from #1 (Strong Buy) to #5 (Strong Sell), and has a solid history of outperforming the market, as verified by third-party audits. Stocks rated #1 have achieved an average annual return of +25% since 1988. In the past 30 days, the Zacks Consensus EPS estimate for Amazon saw a slight decrease of 0.14%, resulting in a current Zacks Rank of #3 (Hold).

When evaluating valuation metrics, Amazon currently trades at a Forward P/E ratio of 39.81. In comparison, the industry average Forward P/E stands at 23.63, indicating that Amazon is valued at a premium relative to its peers.

Furthermore, Amazon's PEG ratio is currently 1.44. This metric, similar to the P/E ratio, considers the company’s anticipated earnings growth. The Internet - Commerce industry holds an average PEG ratio of 1.05 according to the latest closing prices.

Amazon is part of the Retail-Wholesale sector, classified under the Internet - Commerce industry, which holds a Zacks Industry Rank of 70. This rank places it in the top 28% of over 250 industries tracked.

The Zacks Industry Rank measures the relative strength of individual industry groups by assessing the average Zacks Rank of the stocks within those groups. Historical data shows that industries in the top half tend to outperform those in the bottom half by a ratio of 2 to 1.

To stay updated on these metrics and other stock-related data, investors are encouraged to monitor resources and platforms that provide financial insights.

Amazon, Market, Earnings