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Why Advanced Micro Devices (AMD) Outpaced the Stock Market Today
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Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $106.46, moving +1.3% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.06% for the day. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 1.2%.
Shares of the chipmaker have appreciated by 3.55% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Investors will be eagerly watching for the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.68, reflecting a 1.49% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.71 billion, indicating a 2.53% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.74 per share and a revenue of $22.81 billion, demonstrating changes of -21.71% and -3.33%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% decrease. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Advanced Micro Devices is holding a Forward P/E ratio of 38.38. This expresses a premium compared to the average Forward P/E of 26.44 of its industry.
It's also important to note that AMD currently trades at a PEG ratio of 4.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 4.09.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Advanced Micro Devices (AMD) Outpaced the Stock Market Today
Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $106.46, moving +1.3% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.06% for the day. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 1.2%.
Shares of the chipmaker have appreciated by 3.55% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Investors will be eagerly watching for the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.68, reflecting a 1.49% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.71 billion, indicating a 2.53% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.74 per share and a revenue of $22.81 billion, demonstrating changes of -21.71% and -3.33%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% decrease. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Advanced Micro Devices is holding a Forward P/E ratio of 38.38. This expresses a premium compared to the average Forward P/E of 26.44 of its industry.
It's also important to note that AMD currently trades at a PEG ratio of 4.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 4.09.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.