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Amazon (AMZN) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Amazon (AMZN) closed the most recent trading day at $3,000.12, moving -1.86% from the previous trading session. This change lagged the S&P 500's daily loss of 1.08%. At the same time, the Dow lost 1.51%, and the tech-heavy Nasdaq lost 0.86%.

Heading into today, shares of the online retailer had gained 21.12% over the past month, outpacing the Retail-Wholesale sector's gain of 7.91% and the S&P 500's loss of 0.3% in that time.

Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. On that day, AMZN is projected to report earnings of $1.70 per share, which would represent a year-over-year decline of 67.43%. Meanwhile, our latest consensus estimate is calling for revenue of $81.15 billion, up 27.99% from the prior-year quarter.

AMZN's full-year Zacks Consensus Estimates are calling for earnings of $19.99 per share and revenue of $349.03 billion. These results would represent year-over-year changes of -13.12% and +24.42%, respectively.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 1.07% higher. AMZN is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, AMZN is holding a Forward P/E ratio of 152.94. For comparison, its industry has an average Forward P/E of 50.59, which means AMZN is trading at a premium to the group.

Meanwhile, AMZN's PEG ratio is currently 6.25. 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 3.09 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow AMZN in the coming trading sessions, be sure to utilize Zacks.com.


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