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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 $108.19 in the latest trading session, marking a -1.05% move from the prior day. This move lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Heading into today, shares of the chipmaker had lost 2.36% over the past month, lagging the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.75% 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 $0.76 per share. This would mark year-over-year growth of 46.15%. Our most recent consensus estimate is calling for quarterly revenue of $5 billion, up 45.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.99 per share and revenue of $21.46 billion, which would represent changes of +43.01% and +30.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. 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.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Advanced Micro Devices currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 27.38 right now. For comparison, its industry has an average Forward P/E of 21.04, 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 0.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AMD's industry had an average PEG ratio of 1.29 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 68, putting it in the top 27% 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.
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 $108.19 in the latest trading session, marking a -1.05% move from the prior day. This move lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Heading into today, shares of the chipmaker had lost 2.36% over the past month, lagging the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.75% 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 $0.76 per share. This would mark year-over-year growth of 46.15%. Our most recent consensus estimate is calling for quarterly revenue of $5 billion, up 45.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.99 per share and revenue of $21.46 billion, which would represent changes of +43.01% and +30.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. 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.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Advanced Micro Devices currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 27.38 right now. For comparison, its industry has an average Forward P/E of 21.04, 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 0.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AMD's industry had an average PEG ratio of 1.29 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 68, putting it in the top 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.