Back to top

Image: Bigstock

Amkor Technology (AMKR) Stock Drops Despite Market Gains: Important Facts to Note

Read MoreHide Full Article

In the latest trading session, Amkor Technology (AMKR - Free Report) closed at $28.52, marking a -1.74% move from the previous day. This change lagged the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.48%.

Prior to today's trading, shares of the chip packaging and test services provider had gained 19.99% outpaced the Computer and Technology sector's gain of 7.4% and the S&P 500's gain of 2.87%.

Investors will be eagerly watching for the performance of Amkor Technology in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.42, showcasing a 14.29% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.93 billion, indicating a 3.61% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.1 per share and revenue of $6.44 billion, which would represent changes of -23.08% and +2.01%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Amkor Technology. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Amkor Technology possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Amkor Technology is currently exchanging hands at a Forward P/E ratio of 26.51. This signifies a discount in comparison to the average Forward P/E of 36.31 for its industry.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 24% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amkor Technology, Inc. (AMKR) - free report >>

Published in