Advanced Micro Devices (AMD) Stock Declines While Market Improves: Some Information for Investors

Advanced Micro Devices (AMD) ended the recent trading session at $190.65, demonstrating a -0.21% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.82%.

The chipmaker's stock has climbed by 9.89% in the past month, exceeding the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 1.76%.

Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. In that report, analysts expect Advanced Micro Devices to post earnings of $0.60 per share. This would mark no growth from the year-ago period. Alongside, our most recent consensus estimate is anticipating revenue of $5.42 billion, indicating a 1.24% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.46 per share and a revenue of $25.32 billion, representing changes of +30.57% and +11.65%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. The Zacks Consensus EPS estimate has moved 0.26% lower within the past month. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 55.19. This valuation marks a premium compared to its industry's average Forward P/E of 31.18.

Meanwhile, AMD's PEG ratio is currently 2.21. 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 average PEG ratio for the Electronics - Semiconductors industry stood at 3.59 at the close of the market yesterday.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 25% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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