Amazon (AMZN) Suffers a Larger Drop Than the General Market: Key Insights

In the latest close session, Amazon (AMZN) was down 3.1% at $227.01. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.46%. Shares of the online retailer witnessed a loss of 13.82% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 5.64%, and the S&P 500's loss of 1.4%.The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. On that day, Amazon is projected to report earnings of $1.82 per share, which would represent year-over-year growth of 8.33%. In the meantime, our current consensus estimate forecasts the revenue to be $196.87 billion, indicating a 17.39% growth compared to the corresponding quarter of the prior year. For the full year, the Zacks Consensus Estimates are projecting earnings of $8.85 per share and revenue of $826.69 billion, which would represent changes of +23.43% and +15.31%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for Amazon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Amazon is holding a Zacks Rank of #3 (Hold) right now. In the context of valuation, Amazon is at present trading with a Forward P/E ratio of 26.48. This denotes a premium relative to the industry average Forward P/E of 17.36. It is also worth noting that AMZN currently has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.06. The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks