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Amazon Shares Rise 1.21% With Positive EPS Forecasts

Amazon's stock gained 1.21% yesterday, surpassing the S&P 500's increase. Analysts anticipate an EPS of $1.38 for the upcoming quarter, marking a significant 22.12% rise year-over-year. Investors should remain vigilant ahead of the earnings announcement.

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AI Rating:   7
Performance Overview: Amazon (AMZN) experienced a 1.21% increase, performing better than the S&P 500, which only gained 0.16%. However, the stock has lost 4.44% over the past month, although this decline is less than the broader Retail-Wholesale sector average loss of 5.51% and the S&P 500's 3.59% drop.

Earnings Per Share (EPS): For the upcoming earnings announcement, analysts are projecting an EPS of $1.38, which signifies an impressive 22.12% increase compared to the same quarter last year. Furthermore, the full-year consensus estimates suggest earnings of $6.32 per share, reflecting a 14.29% rise from the previous year.

Revenue Growth: The Zacks Consensus Estimate projects revenue of $154.82 billion for the quarter, indicating an 8.03% increase year-over-year. For the full year, revenue expectations are set at $697.68 billion, which corresponds to a growth rate of 9.36%.

Analyst Sentiment: Investors should pay attention to revisions in analyst estimates, as these often signal changing expectations regarding Amazon’s business outlook. Recently, the EPS estimate has risen by 0.11%, which may imply optimism among analysts regarding the company’s performance.

Valuation Metrics: Amazon's current Forward P/E ratio stands at 32.16, notably higher than the industry average of 22.42, suggesting that the stock is trading at a premium. Additionally, Amazon's PEG ratio is 1.41, slightly above the industry average of 1.3, indicating that while the stock is relatively expensive, it may be justified by the growth expected in earnings. This context provides valuable insights for investors considering Amazon's valuation in the broader market.

Industry Position: Amazon operates in the Internet - Commerce industry, which has a favorable Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries. Strong industry rankings often correlate with better performance potential for individual stocks within that sector.

Stocks:  AMZN