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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
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Amazon (AMZN - Free Report) closed at $1,663.54 in the latest trading session, marking a +1.24% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.95%.
Prior to today's trading, shares of the online retailer had gained 0.74% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5% and the S&P 500's loss of 4.97% in that time.
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 $5.48, up 153.7% 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.50 per share and revenue of $232.69 billion, which would represent changes of +328.57% and +30.82%, respectively, from the prior year.
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. 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, 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 remained stagnant. AMZN is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 84.29 right now. Its industry sports an average Forward P/E of 24.52, so we one might conclude that AMZN is trading at a premium comparatively.
Also, we should mention that AMZN has a PEG ratio of 3.12. 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. AMZN's industry had an average PEG ratio of 1.92 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
Amazon (AMZN - Free Report) closed at $1,663.54 in the latest trading session, marking a +1.24% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.95%.
Prior to today's trading, shares of the online retailer had gained 0.74% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5% and the S&P 500's loss of 4.97% in that time.
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 $5.48, up 153.7% 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.50 per share and revenue of $232.69 billion, which would represent changes of +328.57% and +30.82%, respectively, from the prior year.
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. 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, 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 remained stagnant. AMZN is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 84.29 right now. Its industry sports an average Forward P/E of 24.52, so we one might conclude that AMZN is trading at a premium comparatively.
Also, we should mention that AMZN has a PEG ratio of 3.12. 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. AMZN's industry had an average PEG ratio of 1.92 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.