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

In the latest trading session, Amazon (AMZN) closed at $89.09, marking a -1.39% move from the previous day. This move lagged the S&P 500's daily loss of 0.74%. Meanwhile, the Dow lost 0.9%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Coming into today, shares of the online retailer had lost 6.5% in the past month. In that same time, the Retail-Wholesale sector gained 6.79%, while the S&P 500 gained 3.74%.

Amazon will be looking to display strength as it nears its next earnings release. On that day, Amazon is projected to report earnings of $0.22 per share, which would represent a year-over-year decline of 84.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $145.63 billion, up 5.98% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.09 per share and revenue of $510.41 billion. These totals would mark changes of -102.78% and +8.64%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Amazon. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 19.43% higher. Amazon is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Amazon has a Forward P/E ratio of 125.33 right now. This represents a premium compared to its industry's average Forward P/E of 26.44.

Meanwhile, AMZN's PEG ratio is currently 6.22. 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 1.29 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 135, putting it in the bottom 47% 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.

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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Zacks Investment Research