Super Micro Computer (SMCI) closed at $29.27 in the latest trading session, marking a -1.28% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.74% for the day. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
Coming into today, shares of the server technology company had lost 9.93% in the past month. In that same time, the Computer and Technology sector gained 0.14%, while the S&P 500 gained 0.79%.
Analysts and investors alike will be keeping a close eye on the performance of Super Micro Computer in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.48, signifying a 21.31% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $10.43 billion, reflecting a 83.76% rise from the equivalent quarter last year.
SMCI's full-year Zacks Consensus Estimates are calling for earnings of $2.14 per share and revenue of $36.46 billion. These results would represent year-over-year changes of +3.88% and +65.94%, respectively.
Investors should also take note of any recent adjustments 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 business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.06% lower. Super Micro Computer is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 13.84. This indicates a discount in contrast to its industry's Forward P/E of 16.46.
Meanwhile, SMCI's PEG ratio is currently 0.49. 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. The Computer- Storage Devices was holding an average PEG ratio of 1.93 at yesterday's closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 19, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
