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Amazon (AMZN) Stock Sinks As Market Gains: What You Should Know
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Amazon (AMZN - Free Report) closed the most recent trading day at $93.75, moving -1.21% from the previous trading session. This move lagged the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.47%.
Heading into today, shares of the online retailer had lost 8.21% over the past month, lagging the Retail-Wholesale sector's loss of 5.56% and the S&P 500's loss of 2% in that time.
Investors will be hoping for strength from Amazon as it approaches its next earnings release. In that report, analysts expect Amazon to post earnings of $0.20 per share. This would mark a year-over-year decline of 4.76%. Our most recent consensus estimate is calling for quarterly revenue of $124.45 billion, up 6.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.34 per share and revenue of $556.69 billion. These totals would mark changes of +88.73% and +8.31%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amazon. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 15.47% lower. Amazon is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Amazon's current valuation metrics, including its Forward P/E ratio of 70.9. Its industry sports an average Forward P/E of 20.82, so we one might conclude that Amazon is trading at a premium comparatively.
We can also see that AMZN currently has a PEG ratio of 3.91. 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 1.25 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.
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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Amazon (AMZN) Stock Sinks As Market Gains: What You Should Know
Amazon (AMZN - Free Report) closed the most recent trading day at $93.75, moving -1.21% from the previous trading session. This move lagged the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.47%.
Heading into today, shares of the online retailer had lost 8.21% over the past month, lagging the Retail-Wholesale sector's loss of 5.56% and the S&P 500's loss of 2% in that time.
Investors will be hoping for strength from Amazon as it approaches its next earnings release. In that report, analysts expect Amazon to post earnings of $0.20 per share. This would mark a year-over-year decline of 4.76%. Our most recent consensus estimate is calling for quarterly revenue of $124.45 billion, up 6.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.34 per share and revenue of $556.69 billion. These totals would mark changes of +88.73% and +8.31%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amazon. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 15.47% lower. Amazon is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Amazon's current valuation metrics, including its Forward P/E ratio of 70.9. Its industry sports an average Forward P/E of 20.82, so we one might conclude that Amazon is trading at a premium comparatively.
We can also see that AMZN currently has a PEG ratio of 3.91. 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 1.25 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.