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Advanced Micro Devices (AMD) Stock Sinks As Market Gains: What You Should Know
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Advanced Micro Devices (AMD - Free Report) closed at $116.33 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's 0.74% gain on the day.
Heading into today, shares of the chipmaker had gained 14.65% over the past month, outpacing the Computer and Technology sector's loss of 0.81% and the S&P 500's gain of 1.34% in that time.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. This is expected to be October 26, 2021. On that day, AMD is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 60.98%. Meanwhile, our latest consensus estimate is calling for revenue of $4.12 billion, up 47.06% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.51 per share and revenue of $15.66 billion. These totals would mark changes of +94.57% and +60.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AMD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. AMD is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, AMD currently has a Forward P/E ratio of 46.44. For comparison, its industry has an average Forward P/E of 19.9, which means AMD is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 1.04 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.44 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 69, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Stock Sinks As Market Gains: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed at $116.33 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's 0.74% gain on the day.
Heading into today, shares of the chipmaker had gained 14.65% over the past month, outpacing the Computer and Technology sector's loss of 0.81% and the S&P 500's gain of 1.34% in that time.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. This is expected to be October 26, 2021. On that day, AMD is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 60.98%. Meanwhile, our latest consensus estimate is calling for revenue of $4.12 billion, up 47.06% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.51 per share and revenue of $15.66 billion. These totals would mark changes of +94.57% and +60.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AMD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. AMD is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, AMD currently has a Forward P/E ratio of 46.44. For comparison, its industry has an average Forward P/E of 19.9, which means AMD is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 1.04 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.44 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 69, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.