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Advanced Micro Devices (AMD) Stock Sinks As Market Gains: What You Should Know

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Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $57.92, moving -0.07% from the previous trading session. This change lagged the S&P 500's 1.14% gain on the day. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq lost 0.02%.

Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release, which is expected to be November 1, 2022. On that day, Advanced Micro Devices is projected to report earnings of $0.69 per share, which would represent a year-over-year decline of 5.48%. Meanwhile, our latest consensus estimate is calling for revenue of $5.58 billion, up 29.45% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.65 per share and revenue of $24.15 billion. These totals would mark changes of +30.82% and +46.94%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 19.62% lower. Advanced Micro Devices currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 15.9. For comparison, its industry has an average Forward P/E of 12.01, which means Advanced Micro Devices is trading at a premium to the group.

Meanwhile, AMD's PEG ratio is currently 0.63. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 0.83 based on yesterday's closing prices.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 24% 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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