Amazon (AMZN) Dips More Than Broader Markets: What You Should Know
Amazon (AMZN) closed the most recent trading day at $3,338.65, moving -0.75% from the previous trading session. This move lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the online retailer had gained 9.28% in the past month. In that same time, the Retail-Wholesale sector gained 6.56%, while the S&P 500 gained 3.19%.
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 $7.27 per share. This would mark year-over-year growth of 71.87%. Meanwhile, our latest consensus estimate is calling for revenue of $92.83 billion, up 32.66% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $31.61 per share and revenue of $370.15 billion, which would represent changes of +37.38% and +31.95%, respectively, from the prior year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% lower. AMZN is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 106.4 right now. For comparison, its industry has an average Forward P/E of 44.75, which means AMZN is trading at a premium to the group.
Also, we should mention that AMZN has a PEG ratio of 3.53. 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. AMZN's industry had an average PEG ratio of 3.53 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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