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Amazon (AMZN) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Amazon (AMZN - Free Report) reached $153.16, with a -0.94% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.37% for the day. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 0.19%.

Shares of the online retailer witnessed a gain of 0.36% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 1.56% and the S&P 500's gain of 1.56%.

The upcoming earnings release of Amazon will be of great interest to investors. The company is expected to report EPS of $0.79, up 276.19% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $166.12 billion, showing a 11.34% escalation compared to the year-ago quarter.

Investors might also notice recent changes to analyst estimates for Amazon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.09% higher. Amazon is holding a Zacks Rank of #1 (Strong Buy) right now.

In the context of valuation, Amazon is at present trading with a Forward P/E ratio of 42.43. This represents a premium compared to its industry's average Forward P/E of 20.14.

Investors should also note that AMZN has a PEG ratio of 1.49 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Commerce industry stood at 0.62 at the close of the market yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.

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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