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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 $2,954.91, marking a -1.79% move from the previous day. This change lagged the S&P 500's daily loss of 1.12%. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 1.07%.

Coming into today, shares of the online retailer had lost 8.75% in the past month. In that same time, the Retail-Wholesale sector lost 1.2%, while the S&P 500 lost 0.59%.

Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. In that report, analysts expect AMZN to post earnings of $7.50 per share. This would mark year-over-year growth of 77.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $92.78 billion, up 32.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.92 per share and revenue of $369.75 billion. These totals would mark changes of +38.72% and +31.81%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AMZN. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. AMZN is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note AMZN's current valuation metrics, including its Forward P/E ratio of 94.26. This represents a premium compared to its industry's average Forward P/E of 47.74.

Meanwhile, AMZN's PEG ratio is currently 3.13. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 3.13 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 96, putting 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.

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