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Why Amazon (AMZN) Dipped More Than Broader Market Today
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Amazon (AMZN - Free Report) closed the most recent trading day at $237.50, moving -3.46% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Heading into today, shares of the online retailer had lost 5.14% over the past month, lagging the Retail-Wholesale sector's loss of 2.86% and the S&P 500's gain of 1.56%.
Market participants will be closely following the financial results of Amazon in its upcoming release. The company's upcoming EPS is projected at $1.82, signifying a 8.33% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $196.87 billion, showing a 17.39% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.85 per share and revenue of $826.69 billion, indicating changes of +23.43% and +15.31%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Amazon boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Amazon is currently being traded at a Forward P/E ratio of 27.8. For comparison, its industry has an average Forward P/E of 16.83, which means Amazon is trading at a premium to the group.
Also, we should mention that AMZN has a PEG ratio of 1.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Commerce industry stood at 1.03 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 106, this industry ranks in the top 44% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Why Amazon (AMZN) Dipped More Than Broader Market Today
Amazon (AMZN - Free Report) closed the most recent trading day at $237.50, moving -3.46% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Heading into today, shares of the online retailer had lost 5.14% over the past month, lagging the Retail-Wholesale sector's loss of 2.86% and the S&P 500's gain of 1.56%.
Market participants will be closely following the financial results of Amazon in its upcoming release. The company's upcoming EPS is projected at $1.82, signifying a 8.33% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $196.87 billion, showing a 17.39% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.85 per share and revenue of $826.69 billion, indicating changes of +23.43% and +15.31%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Amazon boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Amazon is currently being traded at a Forward P/E ratio of 27.8. For comparison, its industry has an average Forward P/E of 16.83, which means Amazon is trading at a premium to the group.
Also, we should mention that AMZN has a PEG ratio of 1.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Commerce industry stood at 1.03 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 106, this industry ranks in the top 44% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.