Advanced Micro Devices (AMD) Dips More Than Broader Markets: What You Should Know
Advanced Micro Devices (AMD) closed at $75.99 in the latest trading session, marking a -3.58% move from the prior day. This change lagged the S&P 500's 1.04% loss on the day.
Coming into today, shares of the chipmaker had lost 5.45% in the past month. In that same time, the Computer and Technology sector gained 3.67%, while the S&P 500 gained 3.83%.
In that report, analysts expect AMD to post earnings of $0.54 per share. This would mark year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $3.61 billion, up 86.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.14 per share and revenue of $14.69 billion. These totals would mark changes of +65.89% and +50.46%, respectively, from last year.
Any recent changes to analyst estimates for AMD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 11.36% higher. AMD is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 36.75. Its industry sports an average Forward P/E of 20.28, so we one might conclude that AMD is trading at a premium comparatively.
We can also see that AMD currently has a PEG ratio of 1.05. 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 Electronics - Semiconductors industry currently had an average PEG ratio of 1.7 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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