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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 $68.05, moving +1.2% from the previous trading session. This change outpaced the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 7.5%.
Heading into today, shares of the chipmaker had lost 4.85% over the past month, lagging the Computer and Technology sector's loss of 2.78% and the S&P 500's loss of 0.94% in that time.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release. 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 27.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.53 billion, up 14.5% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Advanced Micro Devices currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 19.11 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.27.
Meanwhile, AMD's PEG ratio is currently 1.13. 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% 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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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 $68.05, moving +1.2% from the previous trading session. This change outpaced the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 7.5%.
Heading into today, shares of the chipmaker had lost 4.85% over the past month, lagging the Computer and Technology sector's loss of 2.78% and the S&P 500's loss of 0.94% in that time.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release. 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 27.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.53 billion, up 14.5% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Advanced Micro Devices currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 19.11 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.27.
Meanwhile, AMD's PEG ratio is currently 1.13. 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% 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.