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Amazon (AMZN) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Amazon (AMZN - Free Report) closed at $3,185.27, marking a -0.66% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq lost 0.29%.
Prior to today's trading, shares of the online retailer had gained 2.84% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.96% and lagged the S&P 500's gain of 3.8% in that time.
Investors will be hoping for strength from AMZN as it approaches its next earnings release. The company is expected to report EPS of $6.96, up 7.57% from the prior-year quarter. 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 $34.56 per share and revenue of $380.71 billion, which would represent changes of +50.2% and +35.72%, respectively, from the prior year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. 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. 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.
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. Within the past 30 days, our consensus EPS projection 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 92.79 right now. This valuation marks a premium compared to its industry's average Forward P/E of 52.45.
Also, we should mention that AMZN has a PEG ratio of 3.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AMZN's industry had an average PEG ratio of 2.85 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 20% 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.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.
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Amazon (AMZN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Amazon (AMZN - Free Report) closed at $3,185.27, marking a -0.66% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq lost 0.29%.
Prior to today's trading, shares of the online retailer had gained 2.84% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.96% and lagged the S&P 500's gain of 3.8% in that time.
Investors will be hoping for strength from AMZN as it approaches its next earnings release. The company is expected to report EPS of $6.96, up 7.57% from the prior-year quarter. 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 $34.56 per share and revenue of $380.71 billion, which would represent changes of +50.2% and +35.72%, respectively, from the prior year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. 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. 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.
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. Within the past 30 days, our consensus EPS projection 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 92.79 right now. This valuation marks a premium compared to its industry's average Forward P/E of 52.45.
Also, we should mention that AMZN has a PEG ratio of 3.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AMZN's industry had an average PEG ratio of 2.85 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 20% 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.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.