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Amazon (AMZN) Gains As Market Dips: What You Should Know

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Amazon (AMZN - Free Report) closed at $3,116.42 in the latest trading session, marking a +0.48% move from the prior day. This change outpaced the S&P 500's 0.13% loss on the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Heading into today, shares of the online retailer had lost 0.28% over the past month, lagging the Retail-Wholesale sector's gain of 4.09% and the S&P 500's gain of 3.58% in that time.

Investors will be hoping for strength from AMZN as it approaches its next earnings release. On that day, AMZN is projected to report earnings of $7.03 per share, which would represent year-over-year growth of 8.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $120.18 billion, up 37.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $34.38 per share and revenue of $379.75 billion, which would represent changes of +49.41% and +35.37%, respectively, from the prior year.

Any recent changes to analyst estimates for AMZN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection 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 90.2 right now. For comparison, its industry has an average Forward P/E of 51.58, which means AMZN is trading at a premium to the group.

Investors should also note that AMZN has a PEG ratio of 3.09 right now. 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 2.47 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 23% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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