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Amazon (AMZN) Gains As Market Dips: What You Should Know
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In the latest trading session, Amazon (AMZN - Free Report) closed at $1,904.90, marking a 1.14% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq gained 0.38%.
Heading into today, shares of the online retailer had gained 2.96% over the past month, outpacing the Retail-Wholesale sector's gain of 2.62% and the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from AMZN as it approaches its next earnings release, which is expected to be October 25, 2018. The company is expected to report EPS of $3.21, up 517.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $56.91 billion, up 30.09% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.27 per share and revenue of $234.82 billion. These totals would mark changes of +279.56% and +32.02%, respectively, from last year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 past month, the Zacks Consensus EPS estimate has moved 36.04% higher. AMZN is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, AMZN currently has a Forward P/E ratio of 109.07. For comparison, its industry has an average Forward P/E of 29.8, which means AMZN is trading at a premium to the group.
Also, we should mention that AMZN has a PEG ratio of 4.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce was holding an average PEG ratio of 2.35 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Amazon (AMZN) Gains As Market Dips: What You Should Know
In the latest trading session, Amazon (AMZN - Free Report) closed at $1,904.90, marking a 1.14% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq gained 0.38%.
Heading into today, shares of the online retailer had gained 2.96% over the past month, outpacing the Retail-Wholesale sector's gain of 2.62% and the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from AMZN as it approaches its next earnings release, which is expected to be October 25, 2018. The company is expected to report EPS of $3.21, up 517.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $56.91 billion, up 30.09% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.27 per share and revenue of $234.82 billion. These totals would mark changes of +279.56% and +32.02%, respectively, from last year.
Any recent changes to analyst estimates for AMZN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 past month, the Zacks Consensus EPS estimate has moved 36.04% higher. AMZN is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, AMZN currently has a Forward P/E ratio of 109.07. For comparison, its industry has an average Forward P/E of 29.8, which means AMZN is trading at a premium to the group.
Also, we should mention that AMZN has a PEG ratio of 4.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce was holding an average PEG ratio of 2.35 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.