Advanced Micro Devices (
AMD Quick Quote AMD - Free Report) closed at $100.34 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500's 0.94% loss on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Heading into today, shares of the chipmaker had lost 3.83% over the past month, lagging the Computer and Technology sector's gain of 3.69% and the S&P 500's gain of 1.85% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. On that day, Advanced Micro Devices is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 1.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.71 billion, up 2.53% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $2.74 per share and revenue of $22.82 billion. These results would represent year-over-year changes of -21.71% and -3.32%, respectively.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 37.09. For comparison, its industry has an average Forward P/E of 26.6, which means Advanced Micro Devices is trading at a premium to the group.
Also, we should mention that AMD has a PEG ratio of 4.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 4.72 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 193, putting it in the bottom 24% 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.