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Super Micro Computer (SMCI) Stock Sinks As Market Gains: Here's Why
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Super Micro Computer (SMCI - Free Report) closed at $896.47 in the latest trading session, marking a -1.59% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq appreciated by 1.25%.
Shares of the server technology company witnessed a gain of 15.67% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.77% and the S&P 500's gain of 3.56%.
The investment community will be paying close attention to the earnings performance of Super Micro Computer in its upcoming release. The company is predicted to post an EPS of $5.64, indicating a 246.01% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.9 billion, up 204.03% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $21.71 per share and revenue of $14.5 billion. These totals would mark changes of +83.83% and +103.51%, respectively, from last year.
Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Super Micro Computer is carrying a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Super Micro Computer is currently exchanging hands at a Forward P/E ratio of 41.97. For comparison, its industry has an average Forward P/E of 24.68, which means Super Micro Computer is trading at a premium to the group.
It is also worth noting that SMCI currently has a PEG ratio of 0.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer- Storage Devices industry stood at 1.39 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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Super Micro Computer (SMCI) Stock Sinks As Market Gains: Here's Why
Super Micro Computer (SMCI - Free Report) closed at $896.47 in the latest trading session, marking a -1.59% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq appreciated by 1.25%.
Shares of the server technology company witnessed a gain of 15.67% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.77% and the S&P 500's gain of 3.56%.
The investment community will be paying close attention to the earnings performance of Super Micro Computer in its upcoming release. The company is predicted to post an EPS of $5.64, indicating a 246.01% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.9 billion, up 204.03% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $21.71 per share and revenue of $14.5 billion. These totals would mark changes of +83.83% and +103.51%, respectively, from last year.
Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Super Micro Computer is carrying a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Super Micro Computer is currently exchanging hands at a Forward P/E ratio of 41.97. For comparison, its industry has an average Forward P/E of 24.68, which means Super Micro Computer is trading at a premium to the group.
It is also worth noting that SMCI currently has a PEG ratio of 0.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer- Storage Devices industry stood at 1.39 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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.