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Super Micro Computer (SMCI) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Super Micro Computer (SMCI - Free Report) closed at $243.07, marking a -1.89% move from the previous day. This move lagged the S&P 500's daily loss of 0.94%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 1.53%.

Coming into today, shares of the server technology company had lost 4.01% in the past month. In that same time, the Computer and Technology sector gained 3.69%, while the S&P 500 gained 1.85%.

Super Micro Computer will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.19, down 6.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.07 billion, up 11.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.54 per share and revenue of $9.76 billion, which would represent changes of +31.58% and +36.95%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Super Micro Computer. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Super Micro Computer currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Super Micro Computer's current valuation metrics, including its Forward P/E ratio of 15.94. For comparison, its industry has an average Forward P/E of 19.33, 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 industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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