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Advanced Micro Devices (AMD) Gains As Market Dips: What You Should Know
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In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $71.59, marking a +0.83% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the chipmaker had gained 9.92% over the past month. This has outpaced the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 4.01% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release, which is expected to be January 31, 2023. In that report, analysts expect Advanced Micro Devices to post earnings of $0.67 per share. This would mark a year-over-year decline of 27.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.52 billion, up 14.32% from the year-ago period.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.95% lower. Advanced Micro Devices is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 20.44. For comparison, its industry has an average Forward P/E of 17.12, which means Advanced Micro Devices is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 1.62 right now. 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 was holding an average PEG ratio of 2.82 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $71.59, marking a +0.83% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the chipmaker had gained 9.92% over the past month. This has outpaced the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 4.01% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release, which is expected to be January 31, 2023. In that report, analysts expect Advanced Micro Devices to post earnings of $0.67 per share. This would mark a year-over-year decline of 27.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.52 billion, up 14.32% from the year-ago period.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.95% lower. Advanced Micro Devices is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 20.44. For comparison, its industry has an average Forward P/E of 17.12, which means Advanced Micro Devices is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 1.62 right now. 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 was holding an average PEG ratio of 2.82 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.