Amazon (AMZN – Free Report) is set to release first-quarter fiscal 2017 results on April 27 after market close. Being a market leader in online e-commerce, it is worth taking a look at the company’s fundamentals ahead of its results.

Amazon has been on a torrid run so far this year locking in gains of nearly 21%. The trend is expected to continue as Amazon is poised to beat earnings estimates as per the Zacks methodology despite a negative earnings revision trend. In comparison to the Zacks Internet – Commerce industry, Amazon’s shares have underperformed by wide margins year to date.

Inside Our Methodology

Amazon has a Zacks Rank #3 (Hold) and an Earnings ESP of +4.90%, indicating reasonable chances of beating estimates this quarter. Betting on stocks that have a combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) usually leads to profits in an investor’s portfolio. Our research shows that the chance of a positive earnings surprise is as high as 70% for the stocks with this combination.

Amazon’s earnings surprise history is also solid with the company delivering a positive earnings surprise of 25.68% on average in three of the past four quarters. Additionally, the company is expected to report revenues of $35.40 billion, up 21.52% from the year-ago quarter. Solid e-commerce sales and the fast-growing cloud computing business – Amazon Web Services – will continue to fuel growth. Notably, Amazon Prime remains a key revenue growth driver. Further, the stock boasts a solid industry Rank in the top 37% with a top Growth and Momentum Style Score of A each though a Value Style Score of F looks miserable.

However, the stock saw negative earnings estimate revision by a penny over the past seven days for the first quarter to $1.02, which represents a year-over-year decline of 4.28%.

Amazon.com, Inc. Price, Consensus and EPS Surprise