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Amazon (AMZN) Dips More Than Broader Market: What You Should Know
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Amazon (AMZN - Free Report) closed the most recent trading day at $248.24, moving -2.09% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
The online retailer's shares have seen a decrease of 2.97% over the last month, surpassing the Retail-Wholesale sector's loss of 5.39% and falling behind the S&P 500's loss of 1.99%.
Investors will be eagerly watching for 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%. Alongside, our most recent consensus estimate is anticipating revenue of $201.93 billion, indicating a 12.08% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.06 per share and a revenue of $829.39 billion, representing changes of +82.15% and +15.69%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Amazon is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Amazon is presently being traded at a Forward P/E ratio of 19.42. Its industry sports an average Forward P/E of 16.74, so one might conclude that Amazon is trading at a premium comparatively.
It is also worth noting that AMZN currently has a PEG ratio of 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.21.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 36% echelons 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.
View the Zacks #1 Rank List
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Amazon (AMZN) Dips More Than Broader Market: What You Should Know
Amazon (AMZN - Free Report) closed the most recent trading day at $248.24, moving -2.09% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
The online retailer's shares have seen a decrease of 2.97% over the last month, surpassing the Retail-Wholesale sector's loss of 5.39% and falling behind the S&P 500's loss of 1.99%.
Investors will be eagerly watching for 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%. Alongside, our most recent consensus estimate is anticipating revenue of $201.93 billion, indicating a 12.08% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.06 per share and a revenue of $829.39 billion, representing changes of +82.15% and +15.69%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Amazon is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Amazon is presently being traded at a Forward P/E ratio of 19.42. Its industry sports an average Forward P/E of 16.74, so one might conclude that Amazon is trading at a premium comparatively.
It is also worth noting that AMZN currently has a PEG ratio of 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.21.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 36% echelons 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.