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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 $1,738.75, marking a +0.53% move from the previous day. This change lagged the S&P 500's 0.82% gain on the day. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.64%.

Prior to today's trading, shares of the online retailer had lost 9.97% over the past month. This has lagged the Retail-Wholesale sector's loss of 8.45% and the S&P 500's loss of 4.58% in that time.

AMZN will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMZN to post earnings of $5.28 per share. This would mark year-over-year growth of 4.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $62.51 billion, up 18.2% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.55 per share and revenue of $275.24 billion. These totals would mark changes of +31.83% and +18.19%, respectively, from last year.

Any recent changes to analyst estimates for AMZN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. 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 65.14. Its industry sports an average Forward P/E of 25.22, so we one might conclude that AMZN is trading at a premium comparatively.

We can also see that AMZN currently has a PEG ratio of 1.97. 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. The Internet - Commerce was holding an average PEG ratio of 1.77 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% 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.

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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