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The Zacks Analyst Blog Highlights Amazon, ONLN, XLY, FDIS and VCR
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For Immediate Release
Chicago, IL – March 11, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include:Amazon (AMZN - Free Report) , ProShares Online Retail ETF (ONLN - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) and Vanguard Consumer Discretionary ETF (VCR - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Tap Amazon ETFs on Stock Split and Buyback News
On Mar 9, Amazon gave a nice surprise to the investing world, announcing its first stock split since the dot-com boom. The tech giant and online retailing behemoth announced that its investors will receive 20 shares for each share they currently own. The stock soared 6% in aftermarket trading. The company also said the board authorized it to buy back up to $10 billion worth of shares.
While stock splits do not fundamentally alter anything about the company, it opens the doors for retail investors, who are a little tight on budget to own the stock. Shares post stock split become accessible to a larger number of small-budget investors due to cheaper price. Amazon shares are currently priced at $2785.58 apiece.
Amazon is the latest highly valued tech company which walked the split path due to the sky-high prices of a single share, per a CNBC article. Google parent Alphabet (GOOGL) announced a 20-for-one split in February. In mid-2020, Apple announced plans for a four-for-one split, and Tesla told investors that it was instituting a five-for-one split, as quoted on the CNBC article.
According to a recent Wall Street Journal report, "billionaire activist investor Dan Loeb, who's been adding to his Amazon holdings, told investors on a private call that he sees about $1 trillion in untapped value at the company," the CNBC article also pointed out.
What Do Indicators Say About Amazon's Valuations?
Going by valuation metrics, P/E (ttm) of AMZN is 42.4 times versus the industry-average of 23.1 times. Forward P/E of AMZN is 53.2 times versus the industry score of 24.1 times. Though these measures point to the higher valuation of Amazon than the industry, a higher P/E is always not a sign of worry. It shows investors' confidence in a particular stock among the bunch.
Investors should note that return-on-equity of Amazon is 28%, higher than the industry average of 17.4%. Plus, both return-on-assets and return-on-capital of Amazon are higher than the industry measures. The estimated 3-5 year EPS growth of Amazon is now 24.8% versus 15.5% of the industry measure.
Investors should note that the AMZN stock has a Zacks Rank #3 (Hold). It has a Growth Score of A at the time of writing with a Momentum Score of A (note that A rating is the best). To tap the optimism, investors can play Amazon-heavy ETFs as the basket approach reduces company-specific risks.
Amazon-Heavy ETFs
ProShares Online Retail ETF – AMZN takes the second spot with 23.69% weight.
Consumer Discretionary Select Sector SPDR Fund– AMZN holds the top spot with 22.71% weight. The fund has a Zacks Rank #2.
Fidelity MSCI Consumer Discretionary Index ETF– AMZN occupies the first location with 22.33% weight. FDIS has a Zacks Rank #2.
Vanguard Consumer Discretionary ETF– AMZN occupies the first location with 20.99% weight. The fund has a Zacks Rank #2.
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Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Amazon, ONLN, XLY, FDIS and VCR
For Immediate Release
Chicago, IL – March 11, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include:Amazon (AMZN - Free Report) , ProShares Online Retail ETF (ONLN - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) and Vanguard Consumer Discretionary ETF (VCR - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Tap Amazon ETFs on Stock Split and Buyback News
On Mar 9, Amazon gave a nice surprise to the investing world, announcing its first stock split since the dot-com boom. The tech giant and online retailing behemoth announced that its investors will receive 20 shares for each share they currently own. The stock soared 6% in aftermarket trading. The company also said the board authorized it to buy back up to $10 billion worth of shares.
While stock splits do not fundamentally alter anything about the company, it opens the doors for retail investors, who are a little tight on budget to own the stock. Shares post stock split become accessible to a larger number of small-budget investors due to cheaper price. Amazon shares are currently priced at $2785.58 apiece.
Amazon is the latest highly valued tech company which walked the split path due to the sky-high prices of a single share, per a CNBC article. Google parent Alphabet (GOOGL) announced a 20-for-one split in February. In mid-2020, Apple announced plans for a four-for-one split, and Tesla told investors that it was instituting a five-for-one split, as quoted on the CNBC article.
According to a recent Wall Street Journal report, "billionaire activist investor Dan Loeb, who's been adding to his Amazon holdings, told investors on a private call that he sees about $1 trillion in untapped value at the company," the CNBC article also pointed out.
What Do Indicators Say About Amazon's Valuations?
Going by valuation metrics, P/E (ttm) of AMZN is 42.4 times versus the industry-average of 23.1 times. Forward P/E of AMZN is 53.2 times versus the industry score of 24.1 times. Though these measures point to the higher valuation of Amazon than the industry, a higher P/E is always not a sign of worry. It shows investors' confidence in a particular stock among the bunch.
Investors should note that return-on-equity of Amazon is 28%, higher than the industry average of 17.4%. Plus, both return-on-assets and return-on-capital of Amazon are higher than the industry measures. The estimated 3-5 year EPS growth of Amazon is now 24.8% versus 15.5% of the industry measure.
Investors should note that the AMZN stock has a Zacks Rank #3 (Hold). It has a Growth Score of A at the time of writing with a Momentum Score of A (note that A rating is the best). To tap the optimism, investors can play Amazon-heavy ETFs as the basket approach reduces company-specific risks.
Amazon-Heavy ETFs
ProShares Online Retail ETF – AMZN takes the second spot with 23.69% weight.
Consumer Discretionary Select Sector SPDR Fund– AMZN holds the top spot with 22.71% weight. The fund has a Zacks Rank #2.
Fidelity MSCI Consumer Discretionary Index ETF– AMZN occupies the first location with 22.33% weight. FDIS has a Zacks Rank #2.
Vanguard Consumer Discretionary ETF– AMZN occupies the first location with 20.99% weight. The fund has a Zacks Rank #2.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.