Amazon.com, Inc. (AMZN) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Amazon (AMZN)? Shares have been on the move with the stock up 11.8% over the past month. The stock hit a new 52-week high of $207.55 in the previous session. Amazon has gained 36.3% since the start of the year compared to the 25.6% move for the Zacks Retail-Wholesale sector and the 35.6% return for the Zacks Internet - Commerce industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 31, 2024, Amazon reported EPS of $1.43 versus consensus estimate of $1.14 while it beat the consensus revenue estimate by 1.15%.For the current fiscal year, Amazon is expected to post earnings of $5.14 per share on $637.03 billion in revenues. This represents a 77.24% change in EPS on a 10.83% change in revenues. For the next fiscal year, the company is expected to earn $6.18 per share on $706.26 billion in revenues. This represents a year-over-year change of 20.34% and 10.87%, respectively.Valuation MetricsAmazon may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Amazon has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 40.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 26.1X. On a trailing cash flow basis, the stock currently trades at 27.4X versus its peer group's average of 14.8X. Additionally, the stock has a PEG ratio of 1.42. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Amazon currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Amazon passes the test. Thus, it seems as though Amazon shares could still be poised for more gains ahead.How Does AMZN Stack Up to the Competition?Shares of AMZN have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Carvana Co. (CVNA). CVNA has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. Carvana Co. beat our consensus estimate by 178.26%, and for the current fiscal year, CVNA is expected to post earnings of $2.59 per share on revenue of $13.37 billion.Shares of Carvana Co. have gained 25.7% over the past month, and currently trade at a forward P/E of 230.18X and a P/CF of 360.72X.The Internet - Commerce industry is in the top 22% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AMZN and CVNA, even beyond their own solid fundamental situation.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Carvana Co. (CVNA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks