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Advanced Micro Devices (AMD) Gains But Lags Market: What You Should Know
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Advanced Micro Devices (AMD - Free Report) closed at $19.80 in the latest trading session, marking a +0.2% move from the prior day. The stock lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the chipmaker had gained 18.68% over the past month, outpacing the Computer and Technology sector's gain of 7.59% and the S&P 500's gain of 9.27% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release, which is expected to be January 29, 2019. In that report, analysts expect AMD to post earnings of $0.09 per share. This would mark year-over-year growth of 12.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.44 billion, down 2.68% from the year-ago period.
Investors should also note any recent changes to analyst estimates for AMD. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.8% lower. AMD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AMD has a Forward P/E ratio of 31.79 right now. Its industry sports an average Forward P/E of 13.6, so we one might conclude that AMD is trading at a premium comparatively.
Investors should also note that AMD has a PEG ratio of 2.27 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. AMD's industry had an average PEG ratio of 1.07 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 70, which puts it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Advanced Micro Devices (AMD) Gains But Lags Market: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed at $19.80 in the latest trading session, marking a +0.2% move from the prior day. The stock lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the chipmaker had gained 18.68% over the past month, outpacing the Computer and Technology sector's gain of 7.59% and the S&P 500's gain of 9.27% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release, which is expected to be January 29, 2019. In that report, analysts expect AMD to post earnings of $0.09 per share. This would mark year-over-year growth of 12.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.44 billion, down 2.68% from the year-ago period.
Investors should also note any recent changes to analyst estimates for AMD. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.8% lower. AMD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AMD has a Forward P/E ratio of 31.79 right now. Its industry sports an average Forward P/E of 13.6, so we one might conclude that AMD is trading at a premium comparatively.
Investors should also note that AMD has a PEG ratio of 2.27 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. AMD's industry had an average PEG ratio of 1.07 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 70, which puts it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.