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Amazon (AMZN) Gains But Lags Market: What You Should Know
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Amazon (AMZN - Free Report) ended the recent trading session at $199.34, demonstrating a +0.03% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.07%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.14%.
Heading into today, shares of the online retailer had gained 6.54% over the past month, outpacing the Retail-Wholesale sector's gain of 2.94% and the S&P 500's gain of 4.34% in that time.
Market participants will be closely following the financial results of Amazon in its upcoming release. In that report, analysts expect Amazon to post earnings of $1.02 per share. This would mark year-over-year growth of 61.9%. Meanwhile, the latest consensus estimate predicts the revenue to be $148.54 billion, indicating a 10.54% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.58 per share and revenue of $638.24 billion. These totals would mark changes of +57.93% and +11.04%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant within the past month. As of now, Amazon holds a Zacks Rank of #2 (Buy).
With respect to valuation, Amazon is currently being traded at a Forward P/E ratio of 43.5. This signifies a premium in comparison to the average Forward P/E of 14.29 for its industry.
It's also important to note that AMZN currently trades at a PEG ratio of 1.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.96.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Amazon (AMZN) Gains But Lags Market: What You Should Know
Amazon (AMZN - Free Report) ended the recent trading session at $199.34, demonstrating a +0.03% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.07%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.14%.
Heading into today, shares of the online retailer had gained 6.54% over the past month, outpacing the Retail-Wholesale sector's gain of 2.94% and the S&P 500's gain of 4.34% in that time.
Market participants will be closely following the financial results of Amazon in its upcoming release. In that report, analysts expect Amazon to post earnings of $1.02 per share. This would mark year-over-year growth of 61.9%. Meanwhile, the latest consensus estimate predicts the revenue to be $148.54 billion, indicating a 10.54% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.58 per share and revenue of $638.24 billion. These totals would mark changes of +57.93% and +11.04%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant within the past month. As of now, Amazon holds a Zacks Rank of #2 (Buy).
With respect to valuation, Amazon is currently being traded at a Forward P/E ratio of 43.5. This signifies a premium in comparison to the average Forward P/E of 14.29 for its industry.
It's also important to note that AMZN currently trades at a PEG ratio of 1.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.96.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.