We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Amazon (AMZN) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Amazon (AMZN - Free Report) closed at $1,581.42 in the latest trading session, marking a +0.01% move from the prior day. This move lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.
Coming into today, shares of the online retailer had gained 2.76% in the past month. In that same time, the Retail-Wholesale sector gained 0.48%, while the S&P 500 gained 0.89%.
AMZN will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $5.48, up 153.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $71.61 billion, up 18.46% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.50 per share and revenue of $232.69 billion, which would represent changes of +328.57% and +30.82%, respectively, from the prior year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 1.91% higher. AMZN currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 81.12. This represents a premium compared to its industry's average Forward P/E of 26.97.
We can also see that AMZN currently has a PEG ratio of 3. 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. The Internet - Commerce industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Amazon (AMZN) Gains But Lags Market: What You Should Know
Amazon (AMZN - Free Report) closed at $1,581.42 in the latest trading session, marking a +0.01% move from the prior day. This move lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.
Coming into today, shares of the online retailer had gained 2.76% in the past month. In that same time, the Retail-Wholesale sector gained 0.48%, while the S&P 500 gained 0.89%.
AMZN will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $5.48, up 153.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $71.61 billion, up 18.46% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.50 per share and revenue of $232.69 billion, which would represent changes of +328.57% and +30.82%, respectively, from the prior year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 1.91% higher. AMZN currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 81.12. This represents a premium compared to its industry's average Forward P/E of 26.97.
We can also see that AMZN currently has a PEG ratio of 3. 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. The Internet - Commerce industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.