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Advanced Micro Devices (AMD) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $89.78, marking a -0.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 2.51%.
Coming into today, shares of the chipmaker had lost 7.17% in the past month. In that same time, the Computer and Technology sector gained 4%, while the S&P 500 gained 6.17%.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.56, down 50.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.3 billion, down 9.89% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.01 per share and revenue of $23.52 billion, which would represent changes of -14% and -0.35%, respectively, from the prior year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.15% lower 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 29.88. For comparison, its industry has an average Forward P/E of 19.56, which means Advanced Micro Devices is trading at a premium to the group.
It is also worth noting that AMD currently has a PEG ratio of 4.36. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 3.13 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 95, putting it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Advanced Micro Devices (AMD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $89.78, marking a -0.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 2.51%.
Coming into today, shares of the chipmaker had lost 7.17% in the past month. In that same time, the Computer and Technology sector gained 4%, while the S&P 500 gained 6.17%.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.56, down 50.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.3 billion, down 9.89% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.01 per share and revenue of $23.52 billion, which would represent changes of -14% and -0.35%, respectively, from the prior year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.15% lower 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 29.88. For comparison, its industry has an average Forward P/E of 19.56, which means Advanced Micro Devices is trading at a premium to the group.
It is also worth noting that AMD currently has a PEG ratio of 4.36. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 3.13 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 95, putting it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.