In the latest trading session, Advanced Micro Devices (AMD) closed at $44.49, marking a +1.9% move from the previous day. This change lagged the S&P 500's 2.28% gain on the day. At the same time, the Dow added 2.24%, and the tech-heavy Nasdaq gained 1.72%.
Coming into today, shares of the chipmaker had lost 12.87% in the past month. In that same time, the Computer and Technology sector lost 12.66%, while the S&P 500 lost 16.08%.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. On that day, AMD is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 200%. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, up 39.54% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.07 per share and revenue of $8.58 billion, which would represent changes of +67.19% and +27.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AMD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.77% lower within the past month. AMD currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AMD is holding a Forward P/E ratio of 40.74. This represents a premium compared to its industry's average Forward P/E of 14.69.
We can also see that AMD currently has a PEG ratio of 1.78. 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 was holding an average PEG ratio of 1.78 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
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