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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 the most recent trading day at $81.43, moving +0.39% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the chipmaker had lost 0.56% over the past month. This has lagged the Computer and Technology sector's gain of 1.72% and the S&P 500's gain of 2.02% in that time.
Wall Street will be looking for positivity from Advanced Micro Devices as it approaches its next earnings report date. This is expected to be August 2, 2022. In that report, analysts expect Advanced Micro Devices to post earnings of $1.03 per share. This would mark year-over-year growth of 63.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, up 69.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.35 per share and revenue of $26.28 billion, which would represent changes of +55.91% and +59.93%, respectively, from the prior year.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.45% lower. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 18.63. This represents a premium compared to its industry's average Forward P/E of 14.05.
It is also worth noting that AMD currently has a PEG ratio of 0.66. 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.07 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 133, which puts it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on 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 the most recent trading day at $81.43, moving +0.39% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the chipmaker had lost 0.56% over the past month. This has lagged the Computer and Technology sector's gain of 1.72% and the S&P 500's gain of 2.02% in that time.
Wall Street will be looking for positivity from Advanced Micro Devices as it approaches its next earnings report date. This is expected to be August 2, 2022. In that report, analysts expect Advanced Micro Devices to post earnings of $1.03 per share. This would mark year-over-year growth of 63.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, up 69.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.35 per share and revenue of $26.28 billion, which would represent changes of +55.91% and +59.93%, respectively, from the prior year.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.45% lower. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 18.63. This represents a premium compared to its industry's average Forward P/E of 14.05.
It is also worth noting that AMD currently has a PEG ratio of 0.66. 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.07 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 133, which puts it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.