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GlobalFoundries Inc. (GFS) Gains As Market Dips: What You Should Know

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GlobalFoundries Inc. (GFS - Free Report) closed at $53.53 in the latest trading session, marking a +0.96% move from the prior day. This change outpaced the S&P 500's 1.03% loss on the day. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.27%.

Prior to today's trading, shares of the company had lost 11.29% over the past month. This has lagged the Computer and Technology sector's loss of 4.49% and the S&P 500's loss of 3.51% in that time.

Wall Street will be looking for positivity from GlobalFoundries Inc. as it approaches its next earnings report date. This is expected to be November 8, 2022. In that report, analysts expect GlobalFoundries Inc. to post earnings of $0.62 per share. This would mark year-over-year growth of 785.71%. Meanwhile, our latest consensus estimate is calling for revenue of $2.05 billion, up 20.73% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.67 per share and revenue of $8.08 billion. These totals would mark changes of +5440% and +22.63%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for GlobalFoundries Inc.Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. GlobalFoundries Inc. is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that GlobalFoundries Inc. has a Forward P/E ratio of 19.83 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.06.

Investors should also note that GFS has a PEG ratio of 0.41 right now. 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. GFS's industry had an average PEG ratio of 0.98 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 156, which puts it in the bottom 39% 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.

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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