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Amazon (AMZN) Stock Moves -0.28%: What You Should Know

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Amazon (AMZN - Free Report) closed the most recent trading day at $3,381.83, moving -0.28% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Prior to today's trading, shares of the online retailer had lost 4.35% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 5.11% and lagged the S&P 500's loss of 0.13% in that time.

Amazon will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.90, down 72.32% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $137.63 billion, up 9.62% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $40.79 per share and revenue of $470.51 billion. These totals would mark changes of -2.49% and +21.87%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Amazon. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 2.38% lower. Amazon is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 83.14 right now. For comparison, its industry has an average Forward P/E of 50.98, which means Amazon is trading at a premium to the group.

Investors should also note that AMZN has a PEG ratio of 3.37 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.19 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 227, putting it in the bottom 11% 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.

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


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