Advanced Micro Devices (AMD) Gains But Lags Market: What You Should Know

Advanced Micro Devices (AMD) closed the most recent trading day at $76.77, moving +0.34% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.2%.

Heading into today, shares of the chipmaker had lost 20.26% over the past month, lagging the Computer and Technology sector's loss of 14.62% and the S&P 500's loss of 9.94% in that time.

Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $1.06 per share. This would mark year-over-year growth of 45.21%. Our most recent consensus estimate is calling for quarterly revenue of $6.71 billion, up 55.51% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.37 per share and revenue of $26.23 billion. These totals would mark changes of +56.63% and +59.59%, respectively, from last year.

Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.12% lower. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).

Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 17.51. This valuation marks a premium compared to its industry's average Forward P/E of 15.42.

We can also see that AMD currently has a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMD's industry had an average PEG ratio of 0.95 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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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