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Super Micro Computer (SMCI) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Super Micro Computer (SMCI - Free Report) closed at $91.75, marking a -0.78% move from the previous day. This change lagged the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Heading into today, shares of the server technology company had lost 0.44% over the past month, outpacing the Computer and Technology sector's loss of 2.73% and the S&P 500's loss of 5.06% in that time.
Investors will be hoping for strength from Super Micro Computer as it approaches its next earnings release. The company is expected to report EPS of $2.02, up 30.32% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.47 billion, up 8.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.68 per share and revenue of $6.77 billion. These totals would mark changes of +89.03% and +30.35%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Super Micro Computer. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Super Micro Computer is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Super Micro Computer currently has a Forward P/E ratio of 8.66. This represents a discount compared to its industry's average Forward P/E of 14.55.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% 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.
To follow SMCI in the coming trading sessions, be sure to utilize Zacks.com.