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Amazon (AMZN) Stock Sinks As Market Gains: What You Should Know
Amazon (AMZN - Free Report) closed at $3,084 in the latest trading session, marking a -0.64% move from the prior day. This change lagged the S&P 500's daily gain of 1.34%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 0.94%.
Coming into today, shares of the online retailer had gained 20.65% in the past month. In that same time, the Retail-Wholesale sector gained 11.54%, while the S&P 500 gained 3.92%.
AMZN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.70, down 67.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $81.28 billion, up 28.19% from the prior-year quarter.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $20.08 per share and revenue of $349.44 billion. These results would represent year-over-year changes of -12.73% and +24.57%, respectively.
Any recent changes to analyst estimates for AMZN 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.28% higher within the past month. AMZN is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, AMZN is holding a Forward P/E ratio of 154.58. For comparison, its industry has an average Forward P/E of 42.53, which means AMZN is trading at a premium to the group.
Also, we should mention that AMZN has a PEG ratio of 6.32. 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 2.43 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 96, which puts it in the top 38% 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.