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Why Super Micro Computer (SMCI) Outpaced the Stock Market Today
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Super Micro Computer (SMCI - Free Report) closed the most recent trading day at $30.54, moving +1.55% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.62%. On the other hand, the Dow registered a gain of 0.99%, and the technology-centric Nasdaq increased by 0.65%.
Prior to today's trading, shares of the server technology company had lost 14.98% lagged the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.59%.
The upcoming earnings release of Super Micro Computer will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.48, reflecting a 21.31% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $10.43 billion, indicating a 83.76% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.14 per share and a revenue of $36.46 billion, representing changes of +3.88% and +65.94%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Super Micro Computer. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.06% lower. Super Micro Computer presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 14.03. This signifies a discount in comparison to the average Forward P/E of 17.9 for its industry.
It's also important to note that SMCI currently trades at a PEG ratio of 0.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer- Storage Devices industry held an average PEG ratio of 1.87.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why Super Micro Computer (SMCI) Outpaced the Stock Market Today
Super Micro Computer (SMCI - Free Report) closed the most recent trading day at $30.54, moving +1.55% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.62%. On the other hand, the Dow registered a gain of 0.99%, and the technology-centric Nasdaq increased by 0.65%.
Prior to today's trading, shares of the server technology company had lost 14.98% lagged the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.59%.
The upcoming earnings release of Super Micro Computer will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.48, reflecting a 21.31% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $10.43 billion, indicating a 83.76% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.14 per share and a revenue of $36.46 billion, representing changes of +3.88% and +65.94%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Super Micro Computer. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.06% lower. Super Micro Computer presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 14.03. This signifies a discount in comparison to the average Forward P/E of 17.9 for its industry.
It's also important to note that SMCI currently trades at a PEG ratio of 0.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer- Storage Devices industry held an average PEG ratio of 1.87.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.