Amazon (AMZN) Shows Resilience as Market Declines: Key Insights

In the recent trading session, Amazon (AMZN) closed at $189.07, reflecting a small increase of +0.04% from the previous day. This performance stands out against the S&P 500, which experienced a daily loss of 0.18%. Similarly, the Dow Jones Industrial Average fell by 0.8%, while the Nasdaq, known for its technology focus, rose by 0.27%.

Over the past month, Amazon’s shares have decreased by 1.36%, falling behind the Retail-Wholesale sector, which saw a gain of 3.95%, and the S&P 500's growth of 4.46%.

Upcoming Earnings Report

Investors are keenly anticipating Amazon's upcoming earnings report, scheduled for October 31, 2024. Analysts expect the company to announce earnings per share (EPS) of $1.14, demonstrating a significant increase of 34.12% from the same quarter last year. Additionally, the consensus for revenue stands at $157.06 billion, indicating a growth of 9.77% compared to the previous year.

Fiscal Year Predictions

For the complete fiscal year, the Zacks Consensus Estimates suggest earnings of $4.75 per share and total revenue of $634.46 billion, reflecting increases of 63.79% and 10.38%, respectively, over the last year.

Analyst Estimates

Changes in analyst estimates regarding Amazon are essential for investors to consider, as these adjustments often reflect near-term business trends. Positive revisions suggest a favorable outlook on Amazon's business viability and potential profitability.

Importance of Zacks Rank

Our analysis indicates that shifts in estimates significantly correlate with stock performance in the near future. To help investors navigate this, the Zacks Rank offers an actionable rating system, ranging from #1 (Strong Buy) to #5 (Strong Sell). Stocks rated #1 have historically averaged an annual return of +25% since 1988. Currently, Amazon holds a Zacks Rank of #3 (Hold), with a minor decrease of 0.14% in the consensus EPS estimate over the past 30 days.

Valuation Metrics

From a valuation perspective, Amazon's Forward P/E ratio is currently 39.81. In comparison, its industry averages a Forward P/E of 23.63, indicating that Amazon trades at a premium relative to its sector. The company's PEG ratio stands at 1.44, which considers projected earnings growth, while the Internet - Commerce sector features an average PEG ratio of 1.05.

Industry Performance

Amazon operates within the Internet - Commerce sector, part of the broader Retail-Wholesale industry. This sector holds a Zacks Industry Rank of 70, placing it in the top 28% of more than 250 industries assessed. The Zacks Industry Rank evaluates the strength of individual industry groups based on the average Zacks Rank of their constituent stocks. According to research, industries rated in the top 50% generally outperform those in the lower half.

Conclusion

For those interested in tracking these stock-moving metrics and more, it's beneficial to stay updated on Amazon's performance as future trading sessions unfold.

Amazon, Earnings, Stocks