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Super Micro Computer (SMCI) Stock Declines While Market Improves: Some Information for Investors

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Super Micro Computer (SMCI - Free Report) closed the most recent trading day at $463.61, moving -0.5% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.

The the stock of server technology company has fallen by 17.17% in the past month, lagging the Computer and Technology sector's loss of 0.11% and the S&P 500's gain of 1.65%.

Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. The company is predicted to post an EPS of $7.45, indicating a 117.2% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.52 billion, showing a 207.52% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $33.50 per share and revenue of $28.01 billion, which would represent changes of +51.65% and +87.45%, respectively, from the prior 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. 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Super Micro Computer is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 13.91. This denotes no noticeable deviation relative to the industry's average Forward P/E of 13.91.

The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 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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