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Advanced Micro Devices (AMD) Outpaces Stock Market Gains: What You Should Know
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Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $64.52, moving +1.03% from the previous trading session. This change outpaced the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the chipmaker had lost 16.41% over the past month. This has lagged the Computer and Technology sector's loss of 6.38% and the S&P 500's loss of 4.33% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. The company is expected to report EPS of $0.67, down 27.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.53 billion, up 14.5% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.49 per share and revenue of $23.53 billion. These results would represent year-over-year changes of +25.09% and +43.17%, respectively.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 18.29. For comparison, its industry has an average Forward P/E of 13.68, which means Advanced Micro Devices is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 1.08 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.81 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 174, putting it in the bottom 31% 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.
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Advanced Micro Devices (AMD) Outpaces Stock Market Gains: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $64.52, moving +1.03% from the previous trading session. This change outpaced the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the chipmaker had lost 16.41% over the past month. This has lagged the Computer and Technology sector's loss of 6.38% and the S&P 500's loss of 4.33% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. The company is expected to report EPS of $0.67, down 27.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.53 billion, up 14.5% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.49 per share and revenue of $23.53 billion. These results would represent year-over-year changes of +25.09% and +43.17%, respectively.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 18.29. For comparison, its industry has an average Forward P/E of 13.68, which means Advanced Micro Devices is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 1.08 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.81 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 174, putting it in the bottom 31% 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.