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Advanced Micro Devices (AMD) Increases Despite Market Slip: Here's What You Need to Know

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Advanced Micro Devices (AMD - Free Report) closed at $160.17 in the latest trading session, marking a +0.9% move from the prior day. This move outpaced the S&P 500's daily loss of 0.56%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.59%.

The the stock of chipmaker has risen by 13.26% in the past month, leading the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 1.2%.

The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. The company is scheduled to release its earnings on January 30, 2024. In that report, analysts expect Advanced Micro Devices to post earnings of $0.77 per share. This would mark year-over-year growth of 11.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.11 billion, up 9.2% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-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 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.

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 past month, the Zacks Consensus EPS estimate has shifted 0.41% upward. At present, Advanced Micro Devices boasts a Zacks Rank of #2 (Buy).

Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 43.62. This represents a premium compared to its industry's average Forward P/E of 28.5.

We can additionally observe that AMD currently boasts a PEG ratio of 3.4. 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. AMD's industry had an average PEG ratio of 3.06 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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