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Amazon (AMZN - Free Report) is set to release first-quarter 2023 results today after market close. Being a market leader in e-commerce, it is worth taking a look at the company’s fundamentals ahead of its results (see: all the Consumer Discretionary ETFs here).
Amazon has gained about 25% so far this year and outperformed the industry’s average growth of 5.2%. This outperformance might continue given that the online behemoth has reasonable chances of an earnings beat when it reports.
This has put investors’ focus on ETFs — ProShares Online Retail ETF (ONLN - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) — with a substantial allocation to this online behemoth.
Inside Our Methodology
Amazon has a Zacks Rank #3 (Hold) and an Earnings ESP of +11.50%. According to our surprise prediction methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The stock saw negative earnings estimate revision of four cents over the past seven days for the first quarter. The Zacks Consensus Estimate represents flat year-over-year earnings growth for the to-be-reported quarter. Additionally, Amazon’s earnings surprise history is unimpressive, with a negative surprise of 13.46%, on average, in the last four quarters. However, the company is expected to report revenue growth of 7.1%. The stock has a solid Growth and Momentum Score of B each and falls under a top-ranked Zacks industry (top 32%).
The Zacks Consensus Estimate for the average target price is $141.67, with nearly 97% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings (read: 4 Sector ETFs & Stocks to Win on March Retail Sales).
What to Watch?
In its last earnings release, the world's largest online retailer said it expects revenues in the range of $121-$126 billion for the first quarter of 2023, suggesting 4-8% growth from the year-ago reported number.
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 27 stocks in its basket. Amazon is the top firm, accounting for 27.1% of the portfolio.
ProShares Online Retail ETF has amassed $98.4 million in its asset base and currently trades in a moderate volume of around 31,000 shares a day on average. It charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 329 stocks in its basket. Of these, Amazon takes the top spot with a 21.3% share.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.1 billion in its asset base while trading in a good volume of around 74,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 307 stocks in its basket. Of these, Amazon occupies the top position, with 21.3% allocation. Broadline Retail takes the largest share at 23.8% while automobile manufacturers, restaurants, and home improvement retail round off the next two spots.
VCR charges investors 10 bps in annual fees, while volume is moderate at nearly 61,000 shares a day. The product has managed about $4 billion in its asset base and carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most-popular product in this space, with AUM of nearly $14.5 billion and an average daily volume of around 6 million shares. Holding 53 securities in its basket, Amazon takes the top spot with 24% of assets. Broadline retail, specialty retail, hotels, restaurants & leisure, and automobiles are the top four sectors with double-digit exposure each.
VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with an a 21.3% share.
VanEck Vectors Retail ETF has amassed $153.3 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 4,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 with a Medium risk outlook.
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Amazon Gears Up for Q1 Earnings: ETFs in Focus
Amazon (AMZN - Free Report) is set to release first-quarter 2023 results today after market close. Being a market leader in e-commerce, it is worth taking a look at the company’s fundamentals ahead of its results (see: all the Consumer Discretionary ETFs here).
Amazon has gained about 25% so far this year and outperformed the industry’s average growth of 5.2%. This outperformance might continue given that the online behemoth has reasonable chances of an earnings beat when it reports.
This has put investors’ focus on ETFs — ProShares Online Retail ETF (ONLN - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) — with a substantial allocation to this online behemoth.
Inside Our Methodology
Amazon has a Zacks Rank #3 (Hold) and an Earnings ESP of +11.50%. According to our surprise prediction methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The stock saw negative earnings estimate revision of four cents over the past seven days for the first quarter. The Zacks Consensus Estimate represents flat year-over-year earnings growth for the to-be-reported quarter. Additionally, Amazon’s earnings surprise history is unimpressive, with a negative surprise of 13.46%, on average, in the last four quarters. However, the company is expected to report revenue growth of 7.1%. The stock has a solid Growth and Momentum Score of B each and falls under a top-ranked Zacks industry (top 32%).
The Zacks Consensus Estimate for the average target price is $141.67, with nearly 97% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings (read: 4 Sector ETFs & Stocks to Win on March Retail Sales).
What to Watch?
In its last earnings release, the world's largest online retailer said it expects revenues in the range of $121-$126 billion for the first quarter of 2023, suggesting 4-8% growth from the year-ago reported number.
ETFs in Focus
ProShares Online Retail ETF (ONLN - Free Report)
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 27 stocks in its basket. Amazon is the top firm, accounting for 27.1% of the portfolio.
ProShares Online Retail ETF has amassed $98.4 million in its asset base and currently trades in a moderate volume of around 31,000 shares a day on average. It charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 329 stocks in its basket. Of these, Amazon takes the top spot with a 21.3% share.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.1 billion in its asset base while trading in a good volume of around 74,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Discretionary ETF (VCR - Free Report)
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 307 stocks in its basket. Of these, Amazon occupies the top position, with 21.3% allocation. Broadline Retail takes the largest share at 23.8% while automobile manufacturers, restaurants, and home improvement retail round off the next two spots.
VCR charges investors 10 bps in annual fees, while volume is moderate at nearly 61,000 shares a day. The product has managed about $4 billion in its asset base and carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most-popular product in this space, with AUM of nearly $14.5 billion and an average daily volume of around 6 million shares. Holding 53 securities in its basket, Amazon takes the top spot with 24% of assets. Broadline retail, specialty retail, hotels, restaurants & leisure, and automobiles are the top four sectors with double-digit exposure each.
Consumer Discretionary Select Sector SPDR Fund charges 0.10% in expense ratio and has a Zacks ETF Rank #1 with a Medium risk outlook (read: 6 Sector ETFs to Play for Revenue Growth Potential in Q1).
VanEck Vectors Retail ETF (RTH - Free Report)
VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with an a 21.3% share.
VanEck Vectors Retail ETF has amassed $153.3 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 4,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 with a Medium risk outlook.