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Advanced Micro Devices (AMD) Exceeds Market Returns: Some Facts to Consider
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Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $146.07, moving +1.85% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.14%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Coming into today, shares of the chipmaker had gained 17.54% in the past month. In that same time, the Computer and Technology sector gained 4.87%, while the S&P 500 gained 4.89%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company is expected to report EPS of $0.77, up 11.59% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.11 billion, reflecting a 9.2% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.65 per share and a revenue of $22.63 billion, demonstrating changes of -24.29% and -4.13%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained steady. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Advanced Micro Devices is holding a Forward P/E ratio of 54.14. This expresses a premium compared to the average Forward P/E of 28.63 of its industry.
Investors should also note that AMD has a PEG ratio of 4.22 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Semiconductors industry currently had an average PEG ratio of 4.2 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 19% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Advanced Micro Devices (AMD) Exceeds Market Returns: Some Facts to Consider
Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $146.07, moving +1.85% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.14%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Coming into today, shares of the chipmaker had gained 17.54% in the past month. In that same time, the Computer and Technology sector gained 4.87%, while the S&P 500 gained 4.89%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company is expected to report EPS of $0.77, up 11.59% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.11 billion, reflecting a 9.2% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.65 per share and a revenue of $22.63 billion, demonstrating changes of -24.29% and -4.13%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained steady. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Advanced Micro Devices is holding a Forward P/E ratio of 54.14. This expresses a premium compared to the average Forward P/E of 28.63 of its industry.
Investors should also note that AMD has a PEG ratio of 4.22 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Semiconductors industry currently had an average PEG ratio of 4.2 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 19% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.