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Amazon (AMZN) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Amazon (AMZN - Free Report) closed at $1,631.17, marking a -0.35% move from the previous day. This change lagged the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq 0%.
Coming into today, shares of the online retailer had lost 7.05% in the past month. In that same time, the Retail-Wholesale sector lost 0.59%, while the S&P 500 lost 1.27%.
Investors will be hoping for strength from AMZN as it approaches its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $5.61, up 159.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $71.61 billion, up 18.46% from the prior-year quarter.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $19.37 per share and revenue of $232.69 billion. These results would represent year-over-year changes of +325.71% and +30.82%, respectively.
It is also important to note the recent changes to analyst estimates for AMZN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 9.16% higher. AMZN is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 84.49 right now. This valuation marks a premium compared to its industry's average Forward P/E of 24.51.
It is also worth noting that AMZN currently has a PEG ratio of 3.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.
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Amazon (AMZN) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Amazon (AMZN - Free Report) closed at $1,631.17, marking a -0.35% move from the previous day. This change lagged the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq 0%.
Coming into today, shares of the online retailer had lost 7.05% in the past month. In that same time, the Retail-Wholesale sector lost 0.59%, while the S&P 500 lost 1.27%.
Investors will be hoping for strength from AMZN as it approaches its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $5.61, up 159.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $71.61 billion, up 18.46% from the prior-year quarter.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $19.37 per share and revenue of $232.69 billion. These results would represent year-over-year changes of +325.71% and +30.82%, respectively.
It is also important to note the recent changes to analyst estimates for AMZN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 9.16% higher. AMZN is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 84.49 right now. This valuation marks a premium compared to its industry's average Forward P/E of 24.51.
It is also worth noting that AMZN currently has a PEG ratio of 3.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.