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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 at $87.08 in the latest trading session, marking a +1.71% move from the prior day. This change outpaced the S&P 500's 0.23% gain on the day.
Coming into today, shares of the chipmaker had gained 6.92% in the past month. In that same time, the Computer and Technology sector gained 5.66%, while the S&P 500 gained 2.34%.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. On that day, AMD is projected to report earnings of $0.54 per share, which would represent year-over-year growth of 200%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.61 billion, up 86.86% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $2.16 per share and revenue of $14.69 billion. These results would represent year-over-year changes of +67.44% and +50.46%, respectively.
Investors might also notice recent changes to analyst estimates for AMD. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. AMD currently has a Zacks Rank of #3 (Hold).
Digging into valuation, AMD currently has a Forward P/E ratio of 39.61. This represents a premium compared to its industry's average Forward P/E of 18.05.
It is also worth noting that AMD currently has a PEG ratio of 1.13. 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. AMD's industry had an average PEG ratio of 1.56 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 86, putting it in the top 34% 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) Outpaces Stock Market Gains: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed at $87.08 in the latest trading session, marking a +1.71% move from the prior day. This change outpaced the S&P 500's 0.23% gain on the day.
Coming into today, shares of the chipmaker had gained 6.92% in the past month. In that same time, the Computer and Technology sector gained 5.66%, while the S&P 500 gained 2.34%.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. On that day, AMD is projected to report earnings of $0.54 per share, which would represent year-over-year growth of 200%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.61 billion, up 86.86% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $2.16 per share and revenue of $14.69 billion. These results would represent year-over-year changes of +67.44% and +50.46%, respectively.
Investors might also notice recent changes to analyst estimates for AMD. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. AMD currently has a Zacks Rank of #3 (Hold).
Digging into valuation, AMD currently has a Forward P/E ratio of 39.61. This represents a premium compared to its industry's average Forward P/E of 18.05.
It is also worth noting that AMD currently has a PEG ratio of 1.13. 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. AMD's industry had an average PEG ratio of 1.56 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 86, putting it in the top 34% 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.