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Amazon (AMZN) Gains As Market Dips: What You Should Know
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In the latest trading session, Amazon (AMZN - Free Report) closed at $108.95, marking a +0.25% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.14%.
Coming into today, shares of the online retailer had gained 4.4% in the past month. In that same time, the Retail-Wholesale sector gained 2.55%, while the S&P 500 lost 3.32%.
Wall Street will be looking for positivity from Amazon as it approaches its next earnings report date. On that day, Amazon is projected to report earnings of $0.14 per share, which would represent a year-over-year decline of 81.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $119.92 billion, up 6.05% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $0.53 per share and revenue of $524.96 billion. These results would represent year-over-year changes of -83.64% and +11.74%, respectively.
Any recent changes to analyst estimates for Amazon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.92% lower. Amazon is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, Amazon is holding a Forward P/E ratio of 205.64. Its industry sports an average Forward P/E of 22.45, so we one might conclude that Amazon is trading at a premium comparatively.
Also, we should mention that AMZN has a PEG ratio of 7.7. 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. The Internet - Commerce industry currently had an average PEG ratio of 1.12 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% 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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Amazon (AMZN) Gains As Market Dips: What You Should Know
In the latest trading session, Amazon (AMZN - Free Report) closed at $108.95, marking a +0.25% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.14%.
Coming into today, shares of the online retailer had gained 4.4% in the past month. In that same time, the Retail-Wholesale sector gained 2.55%, while the S&P 500 lost 3.32%.
Wall Street will be looking for positivity from Amazon as it approaches its next earnings report date. On that day, Amazon is projected to report earnings of $0.14 per share, which would represent a year-over-year decline of 81.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $119.92 billion, up 6.05% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $0.53 per share and revenue of $524.96 billion. These results would represent year-over-year changes of -83.64% and +11.74%, respectively.
Any recent changes to analyst estimates for Amazon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.92% lower. Amazon is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, Amazon is holding a Forward P/E ratio of 205.64. Its industry sports an average Forward P/E of 22.45, so we one might conclude that Amazon is trading at a premium comparatively.
Also, we should mention that AMZN has a PEG ratio of 7.7. 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. The Internet - Commerce industry currently had an average PEG ratio of 1.12 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% 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.