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Amazon (AMZN) Stock Drops Despite Market Gains: Important Facts to Note
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Amazon (AMZN - Free Report) closed at $182.55 in the latest trading session, marking a -0.32% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.08% for the day. Meanwhile, the Dow experienced a rise of 0.32%, and the technology-dominated Nasdaq saw an increase of 1.58%.
Shares of the online retailer have depreciated by 3.15% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.31% and the S&P 500's gain of 0.43%.
Investors will be eagerly watching for the performance of Amazon in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 1, 2024. The company is expected to report EPS of $1.02, up 61.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $148.54 billion, up 10.54% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $638.24 billion. These results would represent year-over-year changes of +57.93% and +11.04%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Amazon currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 39.97 right now. This represents a premium compared to its industry's average Forward P/E of 21.16.
We can also see that AMZN currently has a PEG ratio of 1.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.04 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Drops Despite Market Gains: Important Facts to Note
Amazon (AMZN - Free Report) closed at $182.55 in the latest trading session, marking a -0.32% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.08% for the day. Meanwhile, the Dow experienced a rise of 0.32%, and the technology-dominated Nasdaq saw an increase of 1.58%.
Shares of the online retailer have depreciated by 3.15% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.31% and the S&P 500's gain of 0.43%.
Investors will be eagerly watching for the performance of Amazon in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 1, 2024. The company is expected to report EPS of $1.02, up 61.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $148.54 billion, up 10.54% from the year-ago period.
AMZN's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $638.24 billion. These results would represent year-over-year changes of +57.93% and +11.04%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Amazon currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 39.97 right now. This represents a premium compared to its industry's average Forward P/E of 21.16.
We can also see that AMZN currently has a PEG ratio of 1.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.04 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.