In the latest trading session, Advanced Micro Devices (AMD) closed at $76.36, marking a -0.77% move from the previous day. This move was narrower than the S&P 500’s daily loss of 0.92%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the chipmaker had lost 11.54% over the past month, lagging the Computer and Technology sector’s loss of 0.73% and the S&P 500’s loss of 1% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $1.03 per share. This would mark year-over-year growth of 63.49%. Meanwhile, our latest consensus estimate is calling for revenue of $6.52 billion, up 69.43% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.36 per share and revenue of $26.34 billion, which would represent changes of +56.27% and +60.25%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 17.64. This represents a premium compared to its industry’s average Forward P/E of 13.47.
It is also worth noting that AMD currently has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. AMD’s industry had an average PEG ratio of 1.02 as of yesterday’s close.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 132, putting it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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