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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 $97.71, marking a -1.25% move from the previous day. This change lagged the S&P 500's 0.89% gain on the day. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Coming into today, shares of the online retailer had gained 1.8% in the past month. In that same time, the Retail-Wholesale sector lost 5.62%, while the S&P 500 lost 3.9%.
Amazon will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.20, down 4.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $124.43 billion, up 6.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.33 per share and revenue of $556.27 billion. These totals would mark changes of +87.32% and +8.23%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 3.67% lower. Amazon currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 74.23. Its industry sports an average Forward P/E of 19.22, so we one might conclude that Amazon is trading at a premium comparatively.
Meanwhile, AMZN's PEG ratio is currently 4.1. 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. The Internet - Commerce industry currently 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 group has a Zacks Industry Rank of 75, putting it in the top 30% 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.
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 $97.71, marking a -1.25% move from the previous day. This change lagged the S&P 500's 0.89% gain on the day. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Coming into today, shares of the online retailer had gained 1.8% in the past month. In that same time, the Retail-Wholesale sector lost 5.62%, while the S&P 500 lost 3.9%.
Amazon will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.20, down 4.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $124.43 billion, up 6.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.33 per share and revenue of $556.27 billion. These totals would mark changes of +87.32% and +8.23%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 3.67% lower. Amazon currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 74.23. Its industry sports an average Forward P/E of 19.22, so we one might conclude that Amazon is trading at a premium comparatively.
Meanwhile, AMZN's PEG ratio is currently 4.1. 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. The Internet - Commerce industry currently 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 group has a Zacks Industry Rank of 75, putting it in the top 30% 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.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.