Amazon(US:AMZN) ZACKS·2026-01-14 23:46Core Insights - Amazon's stock closed at $236.71, reflecting a decline of -2.43% from the previous day's closing price, underperforming the S&P 500's loss of 0.53% [1] - The company is expected to report an EPS of $1.97, representing a 5.91% increase year-over-year, with projected revenue of $211.29 billion, up 12.51% from the same quarter last year [2] - For the entire fiscal year, earnings are estimated at $7.17 per share, indicating a growth of +29.66%, while revenue is projected to remain flat at $714.76 billion [3] Analyst Estimates - Recent modifications to analyst estimates for Amazon indicate a positive outlook, reflecting analysts' confidence in the company's performance and profit potential [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Amazon as 2 (Buy), suggesting a favorable investment opportunity [6] Valuation Metrics - Amazon's Forward P/E ratio stands at 30.9, significantly higher than the industry average of 17.75, indicating that the stock is trading at a premium [7] - The company has a PEG ratio of 1.52, compared to the Internet - Commerce industry's average PEG ratio of 1.15, suggesting a higher expected earnings growth trajectory [8] Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, currently holds a Zacks Industry Rank of 173, placing it in the bottom 30% of over 250 industries [8] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [9]