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Advanced Micro Devices (AMD) Gains As Market Dips: What You Should Know
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Advanced Micro Devices (AMD - Free Report) closed at $136.23 in the latest trading session, marking a +0.06% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.1%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 0.47%.
Prior to today's trading, shares of the chipmaker had lost 6.26% over the past month. This has lagged the Computer and Technology sector's loss of 1% and the S&P 500's gain of 3.67% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. On that day, Advanced Micro Devices is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 44.23%. Meanwhile, our latest consensus estimate is calling for revenue of $4.52 billion, up 39.28% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. Advanced Micro Devices is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 41.35. This represents a premium compared to its industry's average Forward P/E of 22.76.
It is also worth noting that AMD currently has a PEG ratio of 0.9. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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 As Market Dips: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed at $136.23 in the latest trading session, marking a +0.06% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.1%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 0.47%.
Prior to today's trading, shares of the chipmaker had lost 6.26% over the past month. This has lagged the Computer and Technology sector's loss of 1% and the S&P 500's gain of 3.67% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. On that day, Advanced Micro Devices is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 44.23%. Meanwhile, our latest consensus estimate is calling for revenue of $4.52 billion, up 39.28% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. Advanced Micro Devices is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 41.35. This represents a premium compared to its industry's average Forward P/E of 22.76.
It is also worth noting that AMD currently has a PEG ratio of 0.9. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.