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Why Amkor Technology (AMKR) Outpaced the Stock Market Today

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Amkor Technology (AMKR - Free Report) closed the most recent trading day at $20.45, moving +2.92% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.63%.

Coming into today, shares of the chip packaging and test services provider had gained 1.22% in the past month. In that same time, the Computer and Technology sector gained 11.3%, while the S&P 500 gained 6.29%.

Analysts and investors alike will be keeping a close eye on the performance of Amkor Technology in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.16, signifying a 40.74% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.42 billion, indicating a 2.51% decline compared to the corresponding quarter of the prior year.

AMKR's full-year Zacks Consensus Estimates are calling for earnings of $1.18 per share and revenue of $6.11 billion. These results would represent year-over-year changes of -17.48% and -3.24%, respectively.

Investors might also notice recent changes to analyst estimates for Amkor Technology. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, 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. Amkor Technology is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, Amkor Technology currently has a Forward P/E ratio of 16.87. This indicates a discount in contrast to its industry's Forward P/E of 24.87.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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