Amazon.com, Inc. (NASDAQ:AMZN) analysts expect AMZN to post earnings of $5.28 per share

Amazon.com, Inc. (NASDAQ:AMZN) analysts expect AMZN to post earnings of $5.28 per share

Amazon.com, Inc. (NASDAQ:AMZN) analysts expect AMZN to post earnings of $5.28 per share

Amazon (AMZN) closed at $1,922.19 in the latest trading session, marking a +1.51% move from the prior day. This change outpaced the S&P 500’s 0.77% gain on the day. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 1.06%.

Coming into today, shares of the online retailer had gained 4.26% in the past month. In that same time, the Retail-Wholesale sector gained 6.01%, while the S&P 500 gained 5.12%.

Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. In that report, analysts expect AMZN to post earnings of $5.28 per share. This would mark year-over-year growth of 4.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $62.51 billion, up 18.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $26.55 per share and revenue of $275.24 billion, which would represent changes of +31.83% and +18.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AMZN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AMZN is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 71.32. This represents a premium compared to its industry’s average Forward P/E of 27.25.

Meanwhile, AMZN’s PEG ratio is currently 2.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. AMZN’s industry had an average PEG ratio of 1.79 as of yesterday’s close.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 2,009.62.

The projected lower bound is: 1,837.18.

The projected closing price is: 1,923.40.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 66.1904. This is not an overbought or oversold reading. The last signal was a sell 11 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 60.47. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 19 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 28.560 at 1,922.190. Volume was 23% below average (neutral) and Bollinger Bands were 33% wider than normal.

Open High Low Close Volume___
1,922.9801,929.8201,914.6601,922.190 3,203,347

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 1,904.97 1,870.63 1,745.31
Volatility: 17 30 46
Volume: 3,006,146 4,198,265 5,523,519

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

AMAZON COM gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
AMAZON COM is currently 10.1% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into AMZN.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AMZN.O and have had this outlook for the last 9 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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