Amazon.com, Inc. (NASDAQ:AMZN) Gains But Lags Market: What You Should Know

Amazon.com, Inc. (NASDAQ:AMZN) Gains But Lags Market: What You Should Know

Amazon.com, Inc. (NASDAQ:AMZN) Gains But Lags Market: What You Should Know

In the latest trading session, Amazon (AMZN) closed at $1,891.30, marking a +0.43% move from the previous day. This change lagged the S&P 500’s 0.7% gain on the day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 1.04%.

Coming into today, shares of the online retailer had gained 6.98% in the past month. In that same time, the Retail-Wholesale sector gained 4.86%, while the S&P 500 gained 4.38%.

Wall Street will be looking for positivity from AMZN as it approaches its next earnings report date. The company is expected to report EPS of $3.98, down 34.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $86.01 billion, up 18.82% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for AMZN. Recent revisions tend to reflect the latest 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. 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.

Looking at its valuation, AMZN is holding a Forward P/E ratio of 71.79. For comparison, its industry has an average Forward P/E of 26.45, which means AMZN is trading at a premium to the group.

Meanwhile, AMZN’s PEG ratio is currently 2.62. 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. The Internet – Commerce was holding an average PEG ratio of 1.37 at yesterday’s closing price.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1,819.09.

The projected upper bound is: 1,949.65.

The projected lower bound is: 1,837.40.

The projected closing price is: 1,893.53.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 49.2051. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 62.87. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 6 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 51. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 17 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 8.140 at 1,891.300. Volume was 10% below average (neutral) and Bollinger Bands were 78% wider than normal.

Open     High      Low     Close     Volume___
1,891.3101,898.0001,880.8001,891.300 2,785,844
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,884.49 1,798.28 1,831.41
Volatility: 23 20 24
Volume: 3,451,964 3,033,913 3,469,201

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

AMAZON COM is currently 3.3% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into AMZN.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AMZN.O and have had this outlook for the last 15 periods.

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