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Amazon (AMZN) Gains But Lags Market: What You Should Know
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In the latest trading session, Amazon (AMZN - Free Report) closed at $138.12, marking a +0.08% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the online retailer had gained 7.06% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.88% and the S&P 500's loss of 1.63% in that time.
Investors will be hoping for strength from Amazon as it approaches its next earnings release. The company is expected to report EPS of $0.58, up 190% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $141.89 billion, up 11.64% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $570.79 billion, which would represent changes of +214.08% and +11.05%, respectively, from the prior year.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 44.19% higher within the past month. Amazon is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Amazon currently has a Forward P/E ratio of 60.53. For comparison, its industry has an average Forward P/E of 21.36, which means Amazon is trading at a premium to the group.
We can also see that AMZN currently has a PEG ratio of 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 (AMZN) Gains But Lags Market: What You Should Know
In the latest trading session, Amazon (AMZN - Free Report) closed at $138.12, marking a +0.08% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the online retailer had gained 7.06% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.88% and the S&P 500's loss of 1.63% in that time.
Investors will be hoping for strength from Amazon as it approaches its next earnings release. The company is expected to report EPS of $0.58, up 190% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $141.89 billion, up 11.64% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $570.79 billion, which would represent changes of +214.08% and +11.05%, respectively, from the prior year.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 44.19% higher within the past month. Amazon is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Amazon currently has a Forward P/E ratio of 60.53. For comparison, its industry has an average Forward P/E of 21.36, which means Amazon is trading at a premium to the group.
We can also see that AMZN currently has a PEG ratio of 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.