Amazon (AMZN) Gains But Lags Market: What You Should Know
In the latest trading session, Amazon (AMZN) closed at $3,148.73, marking a +0.12% move from the previous day. This change lagged the S&P 500's 0.83% gain on the day. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, added 0.74%.
Coming into today, shares of the online retailer had lost 10.12% in the past month. In that same time, the Retail-Wholesale sector lost 4.9%, while the S&P 500 lost 4.83%.
Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. On that day, AMZN is projected to report earnings of $7.51 per share, which would represent year-over-year growth of 77.54%. Our most recent consensus estimate is calling for quarterly revenue of $92.82 billion, up 32.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $31.94 per share and revenue of $369.97 billion, which would represent changes of +38.81% and +31.88%, respectively, from the prior 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.19% lower within the past month. AMZN currently has a Zacks Rank of #3 (Hold).
Digging into valuation, AMZN currently has a Forward P/E ratio of 98.47. For comparison, its industry has an average Forward P/E of 48.58, which means AMZN is trading at a premium to the group.
Investors should also note that AMZN has a PEG ratio of 3.27 right now. 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 3.27 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 90, which puts it in the top 36% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
