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Why the Market Dipped But Super Micro Computer (SMCI) Gained Today
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Super Micro Computer (SMCI - Free Report) closed at $908.54 in the latest trading session, marking a +0.48% move from the prior day. This move outpaced the S&P 500's daily loss of 0.95%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq depreciated by 0.84%.
Heading into today, shares of the server technology company had lost 22.25% over the past month, lagging the Computer and Technology sector's gain of 1.67% and the S&P 500's gain of 1.78% in that time.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. It is anticipated that the company will report an EPS of $5.97, marking a 266.26% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.11 billion, indicating a 219.92% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $22.15 per share and a revenue of $14.76 billion, signifying shifts of +87.55% and +107.26%, respectively, from the last year.
Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.93% higher. Right now, Super Micro Computer possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Super Micro Computer is at present trading with a Forward P/E ratio of 40.83. This expresses a premium compared to the average Forward P/E of 17.38 of its industry.
It's also important to note that SMCI currently trades at a PEG ratio of 0.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer- Storage Devices industry stood at 1.4 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 35, placing it within the top 14% of over 250 industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Why the Market Dipped But Super Micro Computer (SMCI) Gained Today
Super Micro Computer (SMCI - Free Report) closed at $908.54 in the latest trading session, marking a +0.48% move from the prior day. This move outpaced the S&P 500's daily loss of 0.95%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq depreciated by 0.84%.
Heading into today, shares of the server technology company had lost 22.25% over the past month, lagging the Computer and Technology sector's gain of 1.67% and the S&P 500's gain of 1.78% in that time.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. It is anticipated that the company will report an EPS of $5.97, marking a 266.26% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.11 billion, indicating a 219.92% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $22.15 per share and a revenue of $14.76 billion, signifying shifts of +87.55% and +107.26%, respectively, from the last year.
Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.93% higher. Right now, Super Micro Computer possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Super Micro Computer is at present trading with a Forward P/E ratio of 40.83. This expresses a premium compared to the average Forward P/E of 17.38 of its industry.
It's also important to note that SMCI currently trades at a PEG ratio of 0.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer- Storage Devices industry stood at 1.4 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 35, placing it within the top 14% of over 250 industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.