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Amazon (AMZN) Gains But Lags Market: What You Should Know
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Amazon (AMZN - Free Report) closed the most recent trading day at $2,615.27, moving +1.66% from the previous trading session. This change lagged the S&P 500's 1.9% gain on the day. Elsewhere, the Dow gained 2.05%, while the tech-heavy Nasdaq added 1.75%.
Investors will be hoping for strength from AMZN as it approaches its next earnings release. The company is expected to report EPS of $1.74, down 66.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $80.79 billion, up 27.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $20.03 per share and revenue of $348.21 billion. These totals would mark changes of -12.95% and +24.13%, respectively, from last year.
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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 1.4% higher within the past month. AMZN is currently a Zacks Rank #3 (Hold).
Investors should also note AMZN's current valuation metrics, including its Forward P/E ratio of 128.48. For comparison, its industry has an average Forward P/E of 48.09, which means AMZN is trading at a premium to the group.
It is also worth noting that AMZN currently has a PEG ratio of 5.25. 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 industry currently had an average PEG ratio of 3.07 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.
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Amazon (AMZN) Gains But Lags Market: What You Should Know
Amazon (AMZN - Free Report) closed the most recent trading day at $2,615.27, moving +1.66% from the previous trading session. This change lagged the S&P 500's 1.9% gain on the day. Elsewhere, the Dow gained 2.05%, while the tech-heavy Nasdaq added 1.75%.
Investors will be hoping for strength from AMZN as it approaches its next earnings release. The company is expected to report EPS of $1.74, down 66.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $80.79 billion, up 27.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $20.03 per share and revenue of $348.21 billion. These totals would mark changes of -12.95% and +24.13%, respectively, from last year.
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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 1.4% higher within the past month. AMZN is currently a Zacks Rank #3 (Hold).
Investors should also note AMZN's current valuation metrics, including its Forward P/E ratio of 128.48. For comparison, its industry has an average Forward P/E of 48.09, which means AMZN is trading at a premium to the group.
It is also worth noting that AMZN currently has a PEG ratio of 5.25. 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 industry currently had an average PEG ratio of 3.07 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.