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Amazon (AMZN) Outpaces Stock Market Gains: What You Should Know
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Amazon (AMZN - Free Report) closed at $2,020.99 in the latest trading session, marking a +0.5% move from the prior day. This change outpaced the S&P 500's 0.02% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.17%.
Heading into today, shares of the online retailer had gained 7.52% over the past month, outpacing the Retail-Wholesale sector's gain of 6.09% and the S&P 500's gain of 4.82% in that time.
Investors will be hoping for strength from AMZN as it approaches its next earnings release, which is expected to be July 25, 2019. In that report, analysts expect AMZN to post earnings of $5.28 per share. This would mark year-over-year growth of 4.14%. Meanwhile, our latest consensus estimate is calling for revenue of $62.51 billion, up 18.2% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.55 per share and revenue of $275.24 billion, which would represent changes of +31.83% and +18.19%, respectively, from the prior year.
Investors should also note any 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 remained stagnant. AMZN is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 75.74 right now. Its industry sports an average Forward P/E of 27.9, so we one might conclude that AMZN is trading at a premium comparatively.
Meanwhile, AMZN's PEG ratio is currently 2.29. 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. The Internet - Commerce was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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) Outpaces Stock Market Gains: What You Should Know
Amazon (AMZN - Free Report) closed at $2,020.99 in the latest trading session, marking a +0.5% move from the prior day. This change outpaced the S&P 500's 0.02% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.17%.
Heading into today, shares of the online retailer had gained 7.52% over the past month, outpacing the Retail-Wholesale sector's gain of 6.09% and the S&P 500's gain of 4.82% in that time.
Investors will be hoping for strength from AMZN as it approaches its next earnings release, which is expected to be July 25, 2019. In that report, analysts expect AMZN to post earnings of $5.28 per share. This would mark year-over-year growth of 4.14%. Meanwhile, our latest consensus estimate is calling for revenue of $62.51 billion, up 18.2% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.55 per share and revenue of $275.24 billion, which would represent changes of +31.83% and +18.19%, respectively, from the prior year.
Investors should also note any 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 remained stagnant. AMZN is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 75.74 right now. Its industry sports an average Forward P/E of 27.9, so we one might conclude that AMZN is trading at a premium comparatively.
Meanwhile, AMZN's PEG ratio is currently 2.29. 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. The Internet - Commerce was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.