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Super Micro Computer (SMCI) Beats Stock Market Upswing: What Investors Need to Know

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Super Micro Computer (SMCI - Free Report) ended the recent trading session at $52.52, demonstrating a +1.59% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, added 0.18%.

The server technology company's shares have seen an increase of 10.92% over the last month, surpassing the Computer and Technology sector's gain of 8.22% and the S&P 500's gain of 5.71%.

Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. The company plans to announce its earnings on August 5, 2025. It is anticipated that the company will report an EPS of $0.44, marking a 30.16% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.99 billion, indicating a 12.76% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.07 per share and a revenue of $22.2 billion, signifying shifts of -6.33% and 0%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates 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 business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 13.14% fall in the Zacks Consensus EPS estimate. Right now, Super Micro Computer possesses a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Super Micro Computer has a Forward P/E ratio of 20.61 right now. This denotes a premium relative to the industry average Forward P/E of 13.7.

It's also important to note that SMCI currently trades at a PEG ratio of 2.06. 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. As of the close of trade yesterday, the Computer- Storage Devices industry held an average PEG ratio of 2.01.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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