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Advanced Micro Devices (AMD) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $135.80, marking a -1.42% move from the previous day. This change lagged the S&P 500's 1.14% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Heading into today, shares of the chipmaker had lost 11.36% over the past month, lagging the Computer and Technology sector's loss of 4.36% and the S&P 500's loss of 1.37% in that time.
Advanced Micro Devices will be looking to display strength as it nears 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 $4.52 billion, up 39.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $16.13 billion, which would represent changes of +105.43% and +65.18%, respectively, from the prior year.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Advanced Micro Devices currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Advanced Micro Devices is holding a Forward P/E ratio of 52.07. For comparison, its industry has an average Forward P/E of 23.64, 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 1.13. 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 1.79 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 53, putting it in the top 21% 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.
View the Zacks #1 Rank List
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Advanced Micro Devices (AMD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $135.80, marking a -1.42% move from the previous day. This change lagged the S&P 500's 1.14% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Heading into today, shares of the chipmaker had lost 11.36% over the past month, lagging the Computer and Technology sector's loss of 4.36% and the S&P 500's loss of 1.37% in that time.
Advanced Micro Devices will be looking to display strength as it nears 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 $4.52 billion, up 39.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $16.13 billion, which would represent changes of +105.43% and +65.18%, respectively, from the prior year.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Advanced Micro Devices currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Advanced Micro Devices is holding a Forward P/E ratio of 52.07. For comparison, its industry has an average Forward P/E of 23.64, 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 1.13. 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 1.79 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 53, putting it in the top 21% 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.