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Amazon (AMZN) Falls More Steeply Than Broader Market: What Investors Need to Know
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Amazon (AMZN - Free Report) closed at $131.47 in the latest trading session, marking a -0.81% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.25%.
Prior to today's trading, shares of the online retailer had lost 5.31% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.66% and the S&P 500's loss of 1.6% in that time.
The upcoming earnings release of Amazon will be of great interest to investors. The company's earnings report is expected on October 26, 2023. It is anticipated that the company will report an EPS of $0.58, marking a 190% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $141.89 billion, indicating a 11.64% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.23 per share and revenue of $570.79 billion, indicating changes of +214.08% and +11.05%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Amazon is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 59.4. This signifies a premium in comparison to the average Forward P/E of 19.39 for its industry.
Also, we should mention that AMZN has a PEG ratio of 2.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AMZN's industry had an average PEG ratio of 0.75 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Falls More Steeply Than Broader Market: What Investors Need to Know
Amazon (AMZN - Free Report) closed at $131.47 in the latest trading session, marking a -0.81% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.25%.
Prior to today's trading, shares of the online retailer had lost 5.31% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.66% and the S&P 500's loss of 1.6% in that time.
The upcoming earnings release of Amazon will be of great interest to investors. The company's earnings report is expected on October 26, 2023. It is anticipated that the company will report an EPS of $0.58, marking a 190% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $141.89 billion, indicating a 11.64% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.23 per share and revenue of $570.79 billion, indicating changes of +214.08% and +11.05%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Amazon is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 59.4. This signifies a premium in comparison to the average Forward P/E of 19.39 for its industry.
Also, we should mention that AMZN has a PEG ratio of 2.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AMZN's industry had an average PEG ratio of 0.75 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.