Advanced Micro Devices (AMD) Gains But Lags Market: What You Should Know
Advanced Micro Devices (AMD) closed the most recent trading day at $30.50, moving +0.16% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.42%.
Heading into today, shares of the chipmaker had gained 11.34% over the past month, outpacing the Computer and Technology sector's gain of 0.55% and the S&P 500's gain of 2.2% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release. On that day, AMD is projected to report earnings of $0.08 per share, which would represent a year-over-year decline of 42.86%. Meanwhile, our latest consensus estimate is calling for revenue of $1.52 billion, down 13.39% from the prior-year quarter.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $0.66 per share and revenue of $6.89 billion. These results would represent year-over-year changes of +43.48% and +6.39%, respectively.
It is also important to note the recent changes to analyst estimates for AMD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.12% lower. AMD currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AMD is currently trading at a Forward P/E ratio of 45.96. This valuation marks a premium compared to its industry's average Forward P/E of 17.42.
We can also see that AMD currently has a PEG ratio of 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.