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Amazon (AMZN) Gains But Lags Market: What You Should Know

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In the latest trading session, Amazon (AMZN - Free Report) closed at $2,004.36, marking a +0.22% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.73%, while the tech-heavy Nasdaq lost 0.11%.

Heading into today, shares of the online retailer had gained 0.03% over the past month, lagging the Retail-Wholesale sector's gain of 0.51% and the S&P 500's gain of 0.73% in that time.

Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. This is expected to be October 25, 2018. On that day, AMZN is projected to report earnings of $3.25 per share, which would represent year-over-year growth of 525%. Our most recent consensus estimate is calling for quarterly revenue of $56.92 billion, up 30.12% from the year-ago period.

AMZN's full-year Zacks Consensus Estimates are calling for earnings of $17.78 per share and revenue of $234.38 billion. These results would represent year-over-year changes of +290.77% and +31.77%, respectively.

Investors should also note any recent changes to analyst estimates for AMZN. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1% higher. AMZN currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, AMZN is holding a Forward P/E ratio of 112.67. This valuation marks a premium compared to its industry's average Forward P/E of 28.91.

We can also see that AMZN currently has a PEG ratio of 4.17. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% 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.




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