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Advanced Micro Devices (AMD) Gains But Lags Market: What You Should Know
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In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $145.24, marking a +0.27% move from the previous day. This change lagged the S&P 500's 0.31% gain on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.48%.
Heading into today, shares of the chipmaker had lost 2.73% over the past month, lagging the Computer and Technology sector's loss of 0.76% and the S&P 500's loss of 0.04% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $0.75 per share. This would mark year-over-year growth of 44.23%. Our most recent consensus estimate is calling for quarterly revenue of $4.51 billion, up 39.04% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $16.12 billion. These results would represent year-over-year changes of +104.65% and +65.1%, respectively.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Advanced Micro Devices currently has a Zacks Rank of #2 (Buy).
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 54.8. For comparison, its industry has an average Forward P/E of 25.13, which means Advanced Micro Devices is trading at a premium to the group.
We can also see that AMD currently has a PEG ratio of 1.19. 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 was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.
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Advanced Micro Devices (AMD) Gains But Lags Market: What You Should Know
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $145.24, marking a +0.27% move from the previous day. This change lagged the S&P 500's 0.31% gain on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.48%.
Heading into today, shares of the chipmaker had lost 2.73% over the past month, lagging the Computer and Technology sector's loss of 0.76% and the S&P 500's loss of 0.04% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $0.75 per share. This would mark year-over-year growth of 44.23%. Our most recent consensus estimate is calling for quarterly revenue of $4.51 billion, up 39.04% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $16.12 billion. These results would represent year-over-year changes of +104.65% and +65.1%, respectively.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Advanced Micro Devices currently has a Zacks Rank of #2 (Buy).
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 54.8. For comparison, its industry has an average Forward P/E of 25.13, which means Advanced Micro Devices is trading at a premium to the group.
We can also see that AMD currently has a PEG ratio of 1.19. 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 was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.