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Why Amazon (AMZN) Dipped More Than Broader Market Today
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In the latest close session, Amazon (AMZN - Free Report) was down 1.41% at $246.15. This change lagged the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.
Shares of the online retailer have depreciated by 6.29% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 6.02%, and the S&P 500's gain of 0.96%.
Investors will be eagerly watching for the performance of Amazon in its upcoming earnings disclosure. On that day, Amazon is projected to report earnings of $2.01 per share, which would represent year-over-year growth of 3.08%. Simultaneously, our latest consensus estimate expects the revenue to be $202.01 billion, showing a 12.12% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.01 per share and revenue of $829.29 billion. These totals would mark changes of +81.45% and +15.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. Amazon is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Amazon is at present trading with a Forward P/E ratio of 19.19. This represents a premium compared to its industry average Forward P/E of 15.49.
Also, we should mention that AMZN has a PEG ratio of 1.19. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.14 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% 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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Why Amazon (AMZN) Dipped More Than Broader Market Today
In the latest close session, Amazon (AMZN - Free Report) was down 1.41% at $246.15. This change lagged the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.
Shares of the online retailer have depreciated by 6.29% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 6.02%, and the S&P 500's gain of 0.96%.
Investors will be eagerly watching for the performance of Amazon in its upcoming earnings disclosure. On that day, Amazon is projected to report earnings of $2.01 per share, which would represent year-over-year growth of 3.08%. Simultaneously, our latest consensus estimate expects the revenue to be $202.01 billion, showing a 12.12% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.01 per share and revenue of $829.29 billion. These totals would mark changes of +81.45% and +15.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. Amazon is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Amazon is at present trading with a Forward P/E ratio of 19.19. This represents a premium compared to its industry average Forward P/E of 15.49.
Also, we should mention that AMZN has a PEG ratio of 1.19. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.14 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% 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.