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Advanced Micro Devices (AMD) Increases Yet Falls Behind Market: What Investors Need to Know
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The latest trading session saw Advanced Micro Devices (AMD - Free Report) ending at $138.19, denoting a +0.42% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.37%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
The the stock of chipmaker has risen by 14.79% in the past month, leading the Computer and Technology sector's gain of 4.65% and the S&P 500's gain of 5.37%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company's upcoming EPS is projected at $0.77, signifying a 11.59% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.11 billion, indicating a 9.2% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.65 per share and a revenue of $22.63 billion, demonstrating changes of -24.29% and -4.13%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.14% fall in the Zacks Consensus EPS estimate. Advanced Micro Devices currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 51.95. This expresses a premium compared to the average Forward P/E of 27.34 of its industry.
Also, we should mention that AMD has a PEG ratio of 5.3. 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 industry had an average PEG ratio of 4.2 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Advanced Micro Devices (AMD) Increases Yet Falls Behind Market: What Investors Need to Know
The latest trading session saw Advanced Micro Devices (AMD - Free Report) ending at $138.19, denoting a +0.42% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.37%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
The the stock of chipmaker has risen by 14.79% in the past month, leading the Computer and Technology sector's gain of 4.65% and the S&P 500's gain of 5.37%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company's upcoming EPS is projected at $0.77, signifying a 11.59% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.11 billion, indicating a 9.2% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.65 per share and a revenue of $22.63 billion, demonstrating changes of -24.29% and -4.13%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.14% fall in the Zacks Consensus EPS estimate. Advanced Micro Devices currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 51.95. This expresses a premium compared to the average Forward P/E of 27.34 of its industry.
Also, we should mention that AMD has a PEG ratio of 5.3. 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 industry had an average PEG ratio of 4.2 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.