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Super Micro Computer (SMCI) Outpaces Stock Market Gains: What You Should Know
Super Micro Computer (SMCI - Free Report) closed at $114 in the latest trading session, marking a +1.3% move from the prior day. This change outpaced the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.34%.
Heading into today, shares of the server technology company had gained 29.79% over the past month, outpacing the Computer and Technology sector's gain of 5.82% and the S&P 500's loss of 1.21% in that time.
Wall Street will be looking for positivity from Super Micro Computer as it approaches its next earnings report date. In that report, analysts expect Super Micro Computer to post earnings of $2.02 per share. This would mark year-over-year growth of 30.32%. Our most recent consensus estimate is calling for quarterly revenue of $1.47 billion, up 8.45% from the year-ago period.
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 should also note any recent changes to analyst estimates for Super Micro Computer. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Super Micro Computer is currently a Zacks Rank #3 (Hold).
Digging into valuation, Super Micro Computer currently has a Forward P/E ratio of 10.54. For comparison, its industry has an average Forward P/E of 14.98, which means Super Micro Computer is trading at a discount to the group.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 24% 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.