Amazon (AMZN) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Amazon (AMZN) closed at $1,844.68, marking a +0.09% move from the previous day. This move outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Coming into today, shares of the online retailer had gained 9.3% in the past month. In that same time, the Retail-Wholesale sector gained 4.75%, while the S&P 500 gained 4.3%.

Investors will be hoping for strength from AMZN as it approaches its next earnings release, which is expected to be April 25, 2019. The company is expected to report EPS of $4.61, up 40.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $59.65 billion, up 16.86% from the prior-year quarter.

AMZN's full-year Zacks Consensus Estimates are calling for earnings of $26.66 per share and revenue of $275.59 billion. These results would represent year-over-year changes of +32.37% and +18.34%, respectively.

Investors might also notice recent changes to analyst estimates for AMZN. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.84% higher within the past month. AMZN currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note AMZN's current valuation metrics, including its Forward P/E ratio of 69.14. This valuation marks a premium compared to its industry's average Forward P/E of 27.88.

Also, we should mention that AMZN has a PEG ratio of 2.22. 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. AMZN's industry had an average PEG ratio of 2.15 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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