Super Micro Computer (SMCI) closed at $917.64 in the latest trading session, marking a -0.26% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq lost 0.79%.
The server technology company's stock has climbed by 5.35% in the past month, falling short of the Computer and Technology sector's gain of 8.85% and outpacing the S&P 500's gain of 3.59%.
Analysts and investors alike will be keeping a close eye on the performance of Super Micro Computer in its upcoming earnings disclosure. In that report, analysts expect Super Micro Computer to post earnings of $7.95 per share. This would mark year-over-year growth of 126.5%. Simultaneously, our latest consensus estimate expects the revenue to be $5.3 billion, showing a 142.58% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $23.51 per share and revenue of $14.93 billion, which would represent changes of +99.07% and +109.66%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Super Micro Computer currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Super Micro Computer has a Forward P/E ratio of 39.14 right now. This signifies a premium in comparison to the average Forward P/E of 29.01 for its industry.
Investors should also note that SMCI has a PEG ratio of 0.75 right now. 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. The Computer- Storage Devices industry had an average PEG ratio of 1.6 as trading concluded yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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.
