Advanced Micro Devices (AMD) ended the recent trading session at $551.63, demonstrating a +2.65% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.37%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq lost 1.33%.
The stock of chipmaker has risen by 14.94% in the past month, leading the Computer and Technology sector's gain of 4.52% and the S&P 500's gain of 2.02%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. It is anticipated that the company will report an EPS of $1.6, marking a 233.33% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.27 billion, reflecting a 46.67% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.18 per share and a revenue of $48.8 billion, demonstrating changes of +72.18% and +40.87%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 74.88. This represents a premium compared to its industry average Forward P/E of 28.47.
It's also important to note that AMD currently trades at a PEG ratio of 1.36. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Integrated Systems was holding an average PEG ratio of 1.03 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
