Amazon (AMZN) Gains As Market Dips: What You Should Know
Amazon (AMZN) closed the most recent trading day at $186.10, moving +1.8% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, lost 0.79%.
Shares of the online retailer witnessed a loss of 0.17% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 0.1% and the S&P 500's gain of 3.59%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.02, marking a 61.9% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $148.54 billion, up 10.54% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.58 per share and revenue of $638.24 billion. These totals would mark changes of +57.93% and +11.04%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amazon. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.96% higher. Amazon currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 39.9. This indicates a premium in contrast to its industry's Forward P/E of 20.
It is also worth noting that AMZN currently has a PEG ratio of 1.35. 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.94.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
