Amazon (AMZN) Dips More Than Broader Markets: What You Should Know
Amazon (AMZN) closed at $3,372.01 in the latest trading session, marking a -0.81% move from the prior day. This change lagged the S&P 500's daily loss of 0.53%.
Heading into today, shares of the online retailer had gained 12.27% over the past month, outpacing the Retail-Wholesale sector's gain of 1.92% and the S&P 500's gain of 5.72% in that time.
Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. This is expected to be April 29, 2021. The company is expected to report EPS of $9.98, up 99.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $105.06 billion, up 39.24% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $49.53 per share and revenue of $472.83 billion. These totals would mark changes of +18.41% and +22.47%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AMZN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. AMZN is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AMZN has a Forward P/E ratio of 68.64 right now. Its industry sports an average Forward P/E of 64.39, so we one might conclude that AMZN is trading at a premium comparatively.
We can also see that AMZN currently has a PEG ratio of 2.55. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.52 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 216, putting it in the bottom 15% 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.
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.com, Inc. (AMZN) : Free Stock Analysis Report
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