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Amazon (AMZN) Outperforms Broader Market: What You Need to Know
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In the latest market close, Amazon (AMZN - Free Report) reached $126.89, with a +1.74% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 1.35%.
Heading into today, shares of the online retailer had lost 9.14% over the past month, lagging the Retail-Wholesale sector's loss of 7.92% and the S&P 500's loss of 6.19% in that time.
The investment community will be paying close attention to the earnings performance of Amazon in its upcoming release. The company is expected to report EPS of $0.58, up 190% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $141.89 billion, up 11.64% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $570.79 billion, which would represent changes of +214.08% and +11.05%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Amazon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Amazon boasts a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 55.89 right now. This signifies a premium in comparison to the average Forward P/E of 19.57 for its industry.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.65. 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 Internet - Commerce industry currently had an average PEG ratio of 0.73 as of yesterday's close.
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 evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Amazon (AMZN) Outperforms Broader Market: What You Need to Know
In the latest market close, Amazon (AMZN - Free Report) reached $126.89, with a +1.74% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 1.35%.
Heading into today, shares of the online retailer had lost 9.14% over the past month, lagging the Retail-Wholesale sector's loss of 7.92% and the S&P 500's loss of 6.19% in that time.
The investment community will be paying close attention to the earnings performance of Amazon in its upcoming release. The company is expected to report EPS of $0.58, up 190% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $141.89 billion, up 11.64% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $570.79 billion, which would represent changes of +214.08% and +11.05%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Amazon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Amazon boasts a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 55.89 right now. This signifies a premium in comparison to the average Forward P/E of 19.57 for its industry.
We can additionally observe that AMZN currently boasts a PEG ratio of 1.65. 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 Internet - Commerce industry currently had an average PEG ratio of 0.73 as of yesterday's close.
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 evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.