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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 the latest trading day at $754.72, indicating a -0.94% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.02%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.1%.
Heading into today, shares of the server technology company had lost 25.68% over the past month, lagging the Computer and Technology sector's loss of 5.13% and the S&P 500's loss of 3.01% in that time.
The upcoming earnings release of Super Micro Computer will be of great interest to investors. The company's earnings report is expected on April 30, 2024. In that report, analysts expect Super Micro Computer to post earnings of $5.97 per share. This would mark year-over-year growth of 266.26%. Our most recent consensus estimate is calling for quarterly revenue of $4.11 billion, up 219.92% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Super Micro Computer. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.93% higher. Super Micro Computer currently has 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 34.4. Its industry sports an average Forward P/E of 24.97, so one might conclude that Super Micro Computer is trading at a premium comparatively.
Investors should also note that SMCI has a PEG ratio of 0.62 right now. 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. The Computer- Storage Devices industry had an average PEG ratio of 1.34 as trading concluded yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 24, finds itself in the top 10% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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Super Micro Computer (SMCI) Stock Sinks As Market Gains: Here's Why
Super Micro Computer (SMCI - Free Report) closed the latest trading day at $754.72, indicating a -0.94% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.02%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.1%.
Heading into today, shares of the server technology company had lost 25.68% over the past month, lagging the Computer and Technology sector's loss of 5.13% and the S&P 500's loss of 3.01% in that time.
The upcoming earnings release of Super Micro Computer will be of great interest to investors. The company's earnings report is expected on April 30, 2024. In that report, analysts expect Super Micro Computer to post earnings of $5.97 per share. This would mark year-over-year growth of 266.26%. Our most recent consensus estimate is calling for quarterly revenue of $4.11 billion, up 219.92% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Super Micro Computer. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.93% higher. Super Micro Computer currently has 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 34.4. Its industry sports an average Forward P/E of 24.97, so one might conclude that Super Micro Computer is trading at a premium comparatively.
Investors should also note that SMCI has a PEG ratio of 0.62 right now. 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. The Computer- Storage Devices industry had an average PEG ratio of 1.34 as trading concluded yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 24, finds itself in the top 10% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.