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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 $1,620.23, marking a -0.35% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.18%.

Prior to today's trading, shares of the online retailer had gained 0.72% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.24% and the S&P 500's gain of 1.81% in that time.

Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. The company is expected to report EPS of $4.67, up 42.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $59.54 billion, up 16.64% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.72 per share and revenue of $275.10 billion. These totals would mark changes of +32.67% and +18.13%, respectively, from last year.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 0.96% higher. AMZN is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note AMZN's current valuation metrics, including its Forward P/E ratio of 60.85. This valuation marks a premium compared to its industry's average Forward P/E of 29.47.

We can also see that AMZN currently has a PEG ratio of 2.26. 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. AMZN's industry had an average PEG ratio of 2.18 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 188, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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