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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 $58.70, moving -0.2% from the previous trading session. This change lagged the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the chipmaker had lost 13.45% over the past month. This has lagged the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 0.84% in that time.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2022. In that report, analysts expect Advanced Micro Devices to post earnings of $0.67 per share. This would mark a year-over-year decline of 8.22%. Our most recent consensus estimate is calling for quarterly revenue of $5.58 billion, up 29.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.60 per share and revenue of $23.95 billion, which would represent changes of +29.03% and +45.73%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 19.63% lower within the past month. Advanced Micro Devices currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 16.35. For comparison, its industry has an average Forward P/E of 12.45, which means Advanced Micro Devices is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 0.65 right now. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 0.81 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 190, which puts it in the bottom 25% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Advanced Micro Devices (AMD) Stock Sinks As Market Gains: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $58.70, moving -0.2% from the previous trading session. This change lagged the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the chipmaker had lost 13.45% over the past month. This has lagged the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 0.84% in that time.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2022. In that report, analysts expect Advanced Micro Devices to post earnings of $0.67 per share. This would mark a year-over-year decline of 8.22%. Our most recent consensus estimate is calling for quarterly revenue of $5.58 billion, up 29.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.60 per share and revenue of $23.95 billion, which would represent changes of +29.03% and +45.73%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 19.63% lower within the past month. Advanced Micro Devices currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 16.35. For comparison, its industry has an average Forward P/E of 12.45, which means Advanced Micro Devices is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 0.65 right now. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 0.81 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 190, which puts it in the bottom 25% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.