Amazon (AMZN) Dips More Than Broader Markets: What You Should Know
Amazon (AMZN) closed at $1,686.22 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's daily loss of 0.09%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the online retailer had gained 3.1% in the past month. In that same time, the Retail-Wholesale sector gained 1.64%, while the S&P 500 gained 2.35%.
AMZN will be looking to display strength as it nears its next earnings release. On that day, AMZN is projected to report earnings of $4.86 per share, which would represent year-over-year growth of 48.62%. Meanwhile, our latest consensus estimate is calling for revenue of $59.54 billion, up 16.64% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.72 per share and revenue of $275.10 billion. These totals would mark changes of +32.67% and +18.13%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AMZN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.96% higher 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 63.28. Its industry sports an average Forward P/E of 27.41, so we one might conclude that AMZN is trading at a premium comparatively.
Investors should also note that AMZN has a PEG ratio of 2.35 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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