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Amazon (AMZN) Stock Sinks As Market Gains: Here's Why
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Amazon (AMZN - Free Report) closed the most recent trading day at $192.38, moving -1.08% from the previous trading session. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.4%.
Coming into today, shares of the online retailer had gained 5.9% in the past month. In that same time, the Retail-Wholesale sector gained 1.3%, while the S&P 500 gained 3.78%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. 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, our latest consensus estimate is calling for revenue of $148.54 billion, up 10.54% from the prior-year quarter.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Amazon holds a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Amazon is presently trading at a Forward P/E ratio of 42.45. This denotes a premium relative to the industry's average Forward P/E of 22.12.
It's also important to note that AMZN currently trades at a PEG ratio of 1.43. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.07 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.
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Amazon (AMZN) Stock Sinks As Market Gains: Here's Why
Amazon (AMZN - Free Report) closed the most recent trading day at $192.38, moving -1.08% from the previous trading session. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.4%.
Coming into today, shares of the online retailer had gained 5.9% in the past month. In that same time, the Retail-Wholesale sector gained 1.3%, while the S&P 500 gained 3.78%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. 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, our latest consensus estimate is calling for revenue of $148.54 billion, up 10.54% from the prior-year quarter.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Amazon holds a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Amazon is presently trading at a Forward P/E ratio of 42.45. This denotes a premium relative to the industry's average Forward P/E of 22.12.
It's also important to note that AMZN currently trades at a PEG ratio of 1.43. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.07 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.