Advanced Micro Devices (AMD) Stock Moves -1.57%: What You Should Know
Advanced Micro Devices (AMD) closed the most recent trading day at $84.03, moving -1.57% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.85%. At the same time, the Dow lost 1.66%, and the tech-heavy Nasdaq lost 10.91%.
Coming into today, shares of the chipmaker had gained 0.8% in the past month. In that same time, the Computer and Technology sector lost 1.65%, while the S&P 500 lost 2.85%.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release. On that day, Advanced Micro Devices is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 50.44%. Meanwhile, our latest consensus estimate is calling for revenue of $5.3 billion, down 9.89% from the prior-year quarter.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.01 per share and revenue of $23.52 billion. These results would represent year-over-year changes of -14% and -0.35%, respectively.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. 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. The Zacks Consensus EPS estimate has moved 0.97% lower within the past month. Advanced Micro Devices is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 28.36. This represents a premium compared to its industry's average Forward P/E of 19.41.
Also, we should mention that AMD has a PEG ratio of 4.14. 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 3.44 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 104, which puts it in the top 42% 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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