Amkor Technology (AMKR) Gains But Lags Market: What You Should Know

In the latest trading session, Amkor Technology (AMKR) closed at $7.50, marking a +1.76% move from the previous day. The stock lagged the S&P 500's daily gain of 2.28%. At the same time, the Dow added 2.24%, and the tech-heavy Nasdaq gained 1.72%.

Prior to today's trading, shares of the chip packaging and test services provider had lost 32.2% over the past month. This has lagged the Computer and Technology sector's loss of 12.66% and the S&P 500's loss of 16.08% in that time.

Investors will be hoping for strength from AMKR as it approaches its next earnings release. The company is expected to report EPS of $0.13, up 425% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 21.1% from the prior-year quarter.

AMKR's full-year Zacks Consensus Estimates are calling for earnings of $0.65 per share and revenue of $4.31 billion. These results would represent year-over-year changes of +16.07% and +6.37%, respectively.

Investors should also note any recent changes to analyst estimates for AMKR. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 35% lower. AMKR is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, AMKR is holding a Forward P/E ratio of 11.34. Its industry sports an average Forward P/E of 14.69, so we one might conclude that AMKR is trading at a discount comparatively.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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