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Amazon (AMZN) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest close session, Amazon (AMZN - Free Report) was down 3.06% at $246.03. The stock trailed the S&P 500, which registered a daily loss of 2.65%. Elsewhere, the Dow saw a downswing of 1.35%, while the tech-heavy Nasdaq depreciated by 4.18%.
The online retailer's shares have seen a decrease of 6.41% over the last month, not keeping up with the Retail-Wholesale sector's loss of 5.69% and the S&P 500's gain of 5.47%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.82, reflecting a 8.33% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $196.87 billion, reflecting a 17.39% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.85 per share and revenue of $824.29 billion. These totals would mark changes of +23.43% and +14.98%, respectively, from last year.
Any recent changes to analyst estimates for Amazon should also be noted by investors. 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 business outlook.
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 remained unchanged. At present, Amazon boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 28.69 right now. This signifies a premium in comparison to the average Forward P/E of 16.99 for its industry.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.66. 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 was holding an average PEG ratio of 1 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 38% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Amazon (AMZN) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Amazon (AMZN - Free Report) was down 3.06% at $246.03. The stock trailed the S&P 500, which registered a daily loss of 2.65%. Elsewhere, the Dow saw a downswing of 1.35%, while the tech-heavy Nasdaq depreciated by 4.18%.
The online retailer's shares have seen a decrease of 6.41% over the last month, not keeping up with the Retail-Wholesale sector's loss of 5.69% and the S&P 500's gain of 5.47%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.82, reflecting a 8.33% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $196.87 billion, reflecting a 17.39% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.85 per share and revenue of $824.29 billion. These totals would mark changes of +23.43% and +14.98%, respectively, from last year.
Any recent changes to analyst estimates for Amazon should also be noted by investors. 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 business outlook.
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 remained unchanged. At present, Amazon boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 28.69 right now. This signifies a premium in comparison to the average Forward P/E of 16.99 for its industry.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.66. 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 was holding an average PEG ratio of 1 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 38% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.