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Amazon (AMZN) Gains As Market Dips: What You Should Know
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In the latest trading session, Amazon (AMZN - Free Report) closed at $137.85, marking a +1.84% move from the previous day. This change outpaced the S&P 500's 0.32% loss on the day. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Heading into today, shares of the online retailer had lost 1.81% over the past month, lagging the Retail-Wholesale sector's loss of 1.56% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from Amazon as it approaches its next earnings report date. On that day, Amazon is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 190%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $141.89 billion, up 11.64% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $2.23 per share and revenue of $570.79 billion. These results would represent year-over-year changes of +214.08% and +11.05%, respectively.
Any recent changes to analyst estimates for Amazon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 3.53% higher within the past month. Amazon is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 60.66 right now. This represents a premium compared to its industry's average Forward P/E of 20.87.
Investors should also note that AMZN has a PEG ratio of 1.79 right now. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Amazon (AMZN) Gains As Market Dips: What You Should Know
In the latest trading session, Amazon (AMZN - Free Report) closed at $137.85, marking a +1.84% move from the previous day. This change outpaced the S&P 500's 0.32% loss on the day. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Heading into today, shares of the online retailer had lost 1.81% over the past month, lagging the Retail-Wholesale sector's loss of 1.56% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from Amazon as it approaches its next earnings report date. On that day, Amazon is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 190%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $141.89 billion, up 11.64% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $2.23 per share and revenue of $570.79 billion. These results would represent year-over-year changes of +214.08% and +11.05%, respectively.
Any recent changes to analyst estimates for Amazon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 3.53% higher within the past month. Amazon is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 60.66 right now. This represents a premium compared to its industry's average Forward P/E of 20.87.
Investors should also note that AMZN has a PEG ratio of 1.79 right now. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.