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

Amazon (AMZN) closed at $3,229.83 in the latest trading session, marking a +0.15% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.04%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.18%.

Coming into today, shares of the online retailer had gained 5.67% in the past month. In that same time, the Retail-Wholesale sector gained 4.29%, while the S&P 500 gained 2.67%.

Wall Street will be looking for positivity from Amazon as it approaches its next earnings report date. The company is expected to report EPS of $9.33, down 40.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $117.05 billion, up 7.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $52.22 per share and revenue of $541.46 billion, which would represent changes of -19.43% and +15.25%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.89% higher. Amazon is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 61.76. This valuation marks a premium compared to its industry’s average Forward P/E of 26.34.

We can also see that AMZN currently has a PEG ratio of 2.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Internet – Commerce stocks are, on average, holding a PEG ratio of 1.39 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 219, putting it in the bottom 14% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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