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Amazon (AMZN) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest trading session, Amazon (AMZN - Free Report) closed at $252.40, marking a -1.78% move from the previous day. This change lagged the S&P 500's 0.48% loss on the day. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.64%.
Prior to today's trading, shares of the online retailer had lost 5.62% was narrower than the Retail-Wholesale sector's loss of 6.98% and lagged the S&P 500's loss of 0.97%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. In that report, analysts expect Amazon to post earnings of $2.03 per share. This would mark year-over-year growth of 4.1%. Meanwhile, the latest consensus estimate predicts the revenue to be $201.93 billion, indicating a 12.08% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.06 per share and a revenue of $829.39 billion, signifying shifts of +82.15% and +15.69%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Amazon is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 19.68. This indicates a premium in contrast to its industry's Forward P/E of 16.66.
Also, we should mention that AMZN has a PEG ratio of 1.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AMZN's industry had an average PEG ratio of 1.21 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 37% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Amazon (AMZN) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, Amazon (AMZN - Free Report) closed at $252.40, marking a -1.78% move from the previous day. This change lagged the S&P 500's 0.48% loss on the day. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.64%.
Prior to today's trading, shares of the online retailer had lost 5.62% was narrower than the Retail-Wholesale sector's loss of 6.98% and lagged the S&P 500's loss of 0.97%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. In that report, analysts expect Amazon to post earnings of $2.03 per share. This would mark year-over-year growth of 4.1%. Meanwhile, the latest consensus estimate predicts the revenue to be $201.93 billion, indicating a 12.08% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.06 per share and a revenue of $829.39 billion, signifying shifts of +82.15% and +15.69%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Amazon is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 19.68. This indicates a premium in contrast to its industry's Forward P/E of 16.66.
Also, we should mention that AMZN has a PEG ratio of 1.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AMZN's industry had an average PEG ratio of 1.21 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 37% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.