Amazon (AMZN) Sees Minor Gains Amid Market Decline

In the most recent trading session, Amazon (AMZN) ended at $189.07, showing a slight increase of +0.04% compared to the previous day. This performance was notably better than the S&P 500 index, which recorded a loss of 0.18% during the same timeframe. The Dow Jones Industrial Average saw a more significant decline of 0.8%, while the tech-heavy Nasdaq index managed to gain 0.27%.

Over the past month, Amazon's stock has decreased by 1.36%. This decline contrasts with the Retail-Wholesale sector, which saw an increase of 3.95%, and the S&P 500's rise of 4.46% during the same period.

Looking forward, investors are keenly awaiting Amazon's financial results, which are set to be released on October 31, 2024. Analysts predict that the company will report earnings per share (EPS) of $1.14, reflecting a substantial increase of 34.12% from the same quarter last year. Expectations for revenue stand at $157.06 billion, anticipating a growth of 9.77% year-over-year.

For the entire fiscal year, Zacks Consensus Estimates forecast earnings of $4.75 per share and total revenue of $634.46 billion, indicating increases of 63.79% and 10.38%, respectively, compared to the previous year.

Investors should also pay attention to any recent adjustments in analyst estimates for Amazon. Such revisions often signal current business trends, and positive updates tend to reflect a favorable outlook regarding the company's financial health.

Our analysis indicates that these estimate changes are closely tied to stock price movements in the near term. To aid investors, the Zacks Rank system has been created, which incorporates these estimate changes to provide a rating. This system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven track record of outperforming the market, showing an average annual return of +25% for stocks rated #1 since 1988. In the last 30 days, however, the Zacks Consensus EPS estimate for Amazon has seen a minor decrease of 0.14%, positioning the company at a Zacks Rank of #3 (Hold).

In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 39.81, which is considerably higher than the average Forward P/E of 23.63 for its industry, suggesting that Amazon's shares are priced at a premium.

The company's PEG ratio currently stands at 1.44. This metric, which also considers anticipated earnings growth, reflects Amazon's growth expectations compared to the Internet - Commerce industry average PEG ratio of 1.05 at the recent close.

As part of the Retail-Wholesale sector, the Internet - Commerce industry has a Zacks Industry Rank of 70, placing it within the top 28% of over 250 industries. The Zacks Industry Rank assesses the relative strength of various industry groups by evaluating the average Zacks Rank of their constituent stocks. Historical data shows that industries rated in the top half consistently outperform those in the bottom half by a significant margin.

For more updates on stock performance and market insights, keep track of relevant metrics and analyses as trading sessions progress.

Amazon, Stocks, Market