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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 $65.41, marking a -1.68% move from the previous day. This move lagged the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, added 0.1%.
Coming into today, shares of the chipmaker had lost 9.97% in the past month. In that same time, the Computer and Technology sector lost 4.59%, while the S&P 500 lost 2.19%.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.67, down 27.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.53 billion, up 14.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.49 per share and revenue of $23.53 billion. These totals would mark changes of +25.09% and +43.17%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 is currently a Zacks Rank #3 (Hold).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 19.06. Its industry sports an average Forward P/E of 14.37, so we one might conclude that Advanced Micro Devices is trading at a premium comparatively.
It is also worth noting that AMD currently has a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.95 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 163, which puts it in the bottom 36% 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $65.41, marking a -1.68% move from the previous day. This move lagged the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, added 0.1%.
Coming into today, shares of the chipmaker had lost 9.97% in the past month. In that same time, the Computer and Technology sector lost 4.59%, while the S&P 500 lost 2.19%.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.67, down 27.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.53 billion, up 14.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.49 per share and revenue of $23.53 billion. These totals would mark changes of +25.09% and +43.17%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 is currently a Zacks Rank #3 (Hold).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 19.06. Its industry sports an average Forward P/E of 14.37, so we one might conclude that Advanced Micro Devices is trading at a premium comparatively.
It is also worth noting that AMD currently has a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.95 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 163, which puts it in the bottom 36% 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.