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Amazon (AMZN) Gains As Market Dips: What You Should Know
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Amazon (AMZN - Free Report) closed the most recent trading day at $92.43, moving +1.87% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.
Prior to today's trading, shares of the online retailer had lost 7.05% over the past month. This has lagged the Retail-Wholesale sector's loss of 6.73% and the S&P 500's loss of 5.39% in that time.
Investors will be hoping for strength from Amazon as it approaches its next earnings release. On that day, Amazon is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $124.45 billion, up 6.87% from the prior-year quarter.
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 might also notice recent changes to analyst estimates for Amazon. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.65% lower. Amazon is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Amazon currently has a Forward P/E ratio of 67.79. This valuation marks a premium compared to its industry's average Forward P/E of 18.28.
Investors should also note that AMZN has a PEG ratio of 3.74 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMZN's industry had an average PEG ratio of 1.11 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 74, which puts it in the top 30% 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) Gains As Market Dips: What You Should Know
Amazon (AMZN - Free Report) closed the most recent trading day at $92.43, moving +1.87% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.
Prior to today's trading, shares of the online retailer had lost 7.05% over the past month. This has lagged the Retail-Wholesale sector's loss of 6.73% and the S&P 500's loss of 5.39% in that time.
Investors will be hoping for strength from Amazon as it approaches its next earnings release. On that day, Amazon is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $124.45 billion, up 6.87% from the prior-year quarter.
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 might also notice recent changes to analyst estimates for Amazon. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.65% lower. Amazon is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Amazon currently has a Forward P/E ratio of 67.79. This valuation marks a premium compared to its industry's average Forward P/E of 18.28.
Investors should also note that AMZN has a PEG ratio of 3.74 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMZN's industry had an average PEG ratio of 1.11 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 74, which puts it in the top 30% 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.