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

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Amazon (AMZN - Free Report) closed at $1,940.10 in the latest trading session, marking a +1.96% move from the prior day. This move lagged the S&P 500's daily gain of 9.38%. Meanwhile, the Dow gained 11.37%, and the Nasdaq, a tech-heavy index, added 8.12%.

Prior to today's trading, shares of the online retailer had lost 5.3% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 22.41% and the S&P 500's loss of 32.94% in that time.

Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. In that report, analysts expect AMZN to post earnings of $6.41 per share. This would mark a year-over-year decline of 9.59%. Meanwhile, our latest consensus estimate is calling for revenue of $72.41 billion, up 21.29% from the prior-year quarter.

AMZN's full-year Zacks Consensus Estimates are calling for earnings of $27.36 per share and revenue of $334.03 billion. These results would represent year-over-year changes of +18.9% and +19.07%, respectively.

It is also important to note the recent changes to analyst estimates for AMZN. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.99% lower within the past month. AMZN currently has a Zacks Rank of #3 (Hold).

Investors should also note AMZN's current valuation metrics, including its Forward P/E ratio of 69.56. This represents a premium compared to its industry's average Forward P/E of 15.06.

It is also worth noting that AMZN currently has a PEG ratio of 2.58. 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. The Internet - Commerce industry currently had an average PEG ratio of 1.11 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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.

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