Super Micro Computer (SMCI) ended the recent trading session at $28.61, demonstrating a -5.01% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq decreased by 0.1%.
Coming into today, shares of the server technology company had lost 3.98% in the past month. In that same time, the Computer and Technology sector gained 2.62%, while the S&P 500 gained 2.26%.
The investment community will be paying close attention to the earnings performance of Super Micro Computer in its upcoming release. The company is predicted to post an EPS of $0.48, indicating a 21.31% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $10.43 billion, up 83.76% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.11 per share and a revenue of $36.46 billion, demonstrating changes of +2.43% and +65.94%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Super Micro Computer. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Super Micro Computer is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Super Micro Computer is currently exchanging hands at a Forward P/E ratio of 14.29. This expresses a discount compared to the average Forward P/E of 21 of its industry.
We can also see that SMCI currently has a PEG ratio of 0.51. 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. By the end of yesterday's trading, the Computer- Storage Devices industry had an average PEG ratio of 1.9.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 23, placing it within the top 10% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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.
