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Amazon (AMZN) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Amazon (AMZN - Free Report) closed at $1,617.21, marking a -1.42% move from the previous day. This change lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.94%.
Prior to today's trading, shares of the online retailer had lost 1.07% over the past month. This has lagged the Retail-Wholesale sector's loss of 0.45% and was narrower than the S&P 500's loss of 1.47% in that time.
AMZN will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. On that day, AMZN is projected to report earnings of $5.48 per share, which would represent year-over-year growth of 153.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $71.61 billion, up 18.46% from the year-ago period.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.36% lower. AMZN currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 62.28. This represents a premium compared to its industry's average Forward P/E of 30.01.
Investors should also note that AMZN has a PEG ratio of 2.31 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Amazon (AMZN) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Amazon (AMZN - Free Report) closed at $1,617.21, marking a -1.42% move from the previous day. This change lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.94%.
Prior to today's trading, shares of the online retailer had lost 1.07% over the past month. This has lagged the Retail-Wholesale sector's loss of 0.45% and was narrower than the S&P 500's loss of 1.47% in that time.
AMZN will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. On that day, AMZN is projected to report earnings of $5.48 per share, which would represent year-over-year growth of 153.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $71.61 billion, up 18.46% from the year-ago period.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.36% lower. AMZN currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AMZN is currently trading at a Forward P/E ratio of 62.28. This represents a premium compared to its industry's average Forward P/E of 30.01.
Investors should also note that AMZN has a PEG ratio of 2.31 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.