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Amazon (AMZN) Registers a Bigger Fall Than the Market: Important Facts to Note
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The most recent trading session ended with Amazon (AMZN - Free Report) standing at $149.94, reflecting a -1.32% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.57%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 1.64%.
Shares of the online retailer witnessed a gain of 4.9% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.05% and outperforming the S&P 500's gain of 4%.
Market participants will be closely following the financial results of Amazon in its upcoming release. On that day, Amazon is projected to report earnings of $0.79 per share, which would represent year-over-year growth of 276.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $166.12 billion, up 11.34% from the year-ago period.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.84% higher. Amazon currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 42.15. This signifies a premium in comparison to the average Forward P/E of 19.97 for its industry.
Also, we should mention that AMZN has a PEG ratio of 1.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce industry currently had an average PEG ratio of 0.56 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Amazon (AMZN) Registers a Bigger Fall Than the Market: Important Facts to Note
The most recent trading session ended with Amazon (AMZN - Free Report) standing at $149.94, reflecting a -1.32% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.57%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 1.64%.
Shares of the online retailer witnessed a gain of 4.9% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.05% and outperforming the S&P 500's gain of 4%.
Market participants will be closely following the financial results of Amazon in its upcoming release. On that day, Amazon is projected to report earnings of $0.79 per share, which would represent year-over-year growth of 276.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $166.12 billion, up 11.34% from the year-ago period.
Any recent changes to analyst estimates for Amazon should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.84% higher. Amazon currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Amazon is holding a Forward P/E ratio of 42.15. This signifies a premium in comparison to the average Forward P/E of 19.97 for its industry.
Also, we should mention that AMZN has a PEG ratio of 1.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce industry currently had an average PEG ratio of 0.56 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.