Zacks Analyst Blog Highlights Amazon, ONLN, XLY, FDIS and VCR

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For immediate release

Chicago, IL – March 11, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. ETFs recently featured in the blog include: Amazon AMZN, ProShares Online Retail ETF ONLN, Consumer Discretionary Select Sector SPDR Fund XLY, Fidelity MSCI Consumer Discretionary Index ETF FDIS, and Vanguard Consumer Discretionary ETF VCR.

Here are the highlights from Monday’s analyst blog:

Tap Amazon ETFs on Stock Splitting and Redeeming

On March 9, Amazon pleasantly surprised the investing world by announcing its first stock split since the dot-com boom. The tech giant and online retail giant has announced that its investors will receive 20 shares for every share they currently hold. The stock climbed 6% in aftermarket trading. The company also said the board has authorized it to repurchase up to $10 billion in stock.

Although stock splits don’t fundamentally change anything about the company, they open the doors to retail investors, who have a bit of a tight budget to own the shares. Shares after the stock split become accessible to more low-budget investors due to a cheaper price. Amazon shares are currently priced at $2785.58 each.

Amazon is the latest highly-rated tech company to go the split path due to exorbitant single-stock prices, according to a CNBC article. Google’s parent Alphabet (GOOGL) announced a 20-to-one split in February. In mid-2020, Apple announced plans for a four-to-one split, and Tesla told investors it was instituting a five-to-one split, as quoted in the CNBC article.

According to a recent Wall Street Journal report, “Billionaire activist investor Dan Loeb, who added to his Amazon holdings, told investors on a private call that he sees about $1 trillion in untapped value. in the business,” the CNBC article also pointed out. .

What do the indicators say about Amazon’s valuations?

According to valuation metrics, AMZN’s P/E (ttm) is 42.4x compared to the industry average of 23.1x. AMZN’s forward P/E is 53.2x versus the industry score of 24.1x. While these metrics point to a higher valuation of Amazon than the industry, a higher P/E is still not a sign of concern. This shows investor confidence in a particular stock among the group.

Investors should note that Amazon’s return on equity is 28%, above the industry average of 17.4%. Additionally, Amazon’s return on assets and return on capital are above industry measures. Amazon’s estimated 3-5 year EPS growth is now 24.8% versus 15.5% of the industry measure.

Investors should note that AMZN stock has a Zacks rank of #3 (Hold). It has a growth score of A at the time of writing with a Momentum score of A (note that an A rating is the best). To tap into the optimism, investors can play heavy Amazon ETFs, as the basket approach reduces company-specific risks.

Amazon heavy ETFs

ProShares Online Retail ETF – AMZN takes second place with 23.69% by weight.

SPDR Consumer Discretionary Fund– AMZN takes the top spot with 22.71% weight. The fund has a Zacks rank of No. 2.

Fidelity MSCI Consumer Discretionary Index ETF– AMZN takes the top slot with 22.33% weight. FDIS has a #2 Zacks rank.

Vanguard Consumer Discretionary ETF– AMZN takes the top slot with 20.99% weight. The fund has a Zacks rank of No. 2.

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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.

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Amazon.com, Inc. (AMZN): Free Stock Analysis Report

SPDR Consumer Discretionary ETFs (XLY): ETF Research Reports

Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports

ETF Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports

ProShares Online Retail ETF (ONLN): ETF Research Reports

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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