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Amazon (AMZN) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, Amazon (AMZN - Free Report) closed at $195.84, marking a -1.07% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.31%.
The online retailer's shares have seen a decrease of 13.44% over the last month, not keeping up with the Retail-Wholesale sector's loss of 11.57% and the S&P 500's loss of 7.69%.
The upcoming earnings release of Amazon will be of great interest to investors. The company's upcoming EPS is projected at $1.38, signifying a 22.12% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $154.82 billion, up 8.03% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.32 per share and revenue of $697.68 billion, indicating changes of +14.29% and +9.36%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Amazon is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Amazon's current valuation metrics, including its Forward P/E ratio of 31.32. This expresses a premium compared to the average Forward P/E of 21.22 of its industry.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.37. 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. The average PEG ratio for the Internet - Commerce industry stood at 1.12 at the close of the market yesterday.
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 strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Amazon (AMZN) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Amazon (AMZN - Free Report) closed at $195.84, marking a -1.07% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.31%.
The online retailer's shares have seen a decrease of 13.44% over the last month, not keeping up with the Retail-Wholesale sector's loss of 11.57% and the S&P 500's loss of 7.69%.
The upcoming earnings release of Amazon will be of great interest to investors. The company's upcoming EPS is projected at $1.38, signifying a 22.12% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $154.82 billion, up 8.03% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.32 per share and revenue of $697.68 billion, indicating changes of +14.29% and +9.36%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Amazon is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Amazon's current valuation metrics, including its Forward P/E ratio of 31.32. This expresses a premium compared to the average Forward P/E of 21.22 of its industry.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.37. 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. The average PEG ratio for the Internet - Commerce industry stood at 1.12 at the close of the market yesterday.
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 strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.