The most recent trading session ended with Super Micro Computer (SMCI) standing at $34.24, reflecting a -0.06% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Prior to today's trading, shares of the server technology company had lost 17.37% over the past month. This has lagged the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22% in that time.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. The company is predicted to post an EPS of $0.52, indicating a 22.39% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.34 billion, up 38.58% from the year-ago period.
SMCI's full-year Zacks Consensus Estimates are calling for earnings of $2.55 per share and revenue of $23.79 billion. These results would represent year-over-year changes of +15.38% and +59.19%, respectively.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 17.2% rise in the Zacks Consensus EPS estimate. Super Micro Computer currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 13.46. For comparison, its industry has an average Forward P/E of 12.23, which means Super Micro Computer is trading at a premium to the group.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SMCI in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
