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Why Advanced Micro Devices (AMD) Dipped More Than Broader Market Today
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In the latest close session, Advanced Micro Devices (AMD - Free Report) was down 2.95% at $196.04. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.73%.
The chipmaker's shares have seen an increase of 0.89% over the last month, surpassing the Computer and Technology sector's loss of 8.37% and the S&P 500's loss of 7.34%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company's earnings per share (EPS) are projected to be $1.27, reflecting a 32.29% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.84 billion, indicating a 32.32% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.61 per share and a revenue of $45.37 billion, signifying shifts of +58.51% and +30.97%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 30.55. Its industry sports an average Forward P/E of 19.03, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
Investors should also note that AMD has a PEG ratio of 0.65 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Integrated Systems was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 30, putting it in the top 13% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why Advanced Micro Devices (AMD) Dipped More Than Broader Market Today
In the latest close session, Advanced Micro Devices (AMD - Free Report) was down 2.95% at $196.04. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.73%.
The chipmaker's shares have seen an increase of 0.89% over the last month, surpassing the Computer and Technology sector's loss of 8.37% and the S&P 500's loss of 7.34%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company's earnings per share (EPS) are projected to be $1.27, reflecting a 32.29% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.84 billion, indicating a 32.32% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.61 per share and a revenue of $45.37 billion, signifying shifts of +58.51% and +30.97%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 30.55. Its industry sports an average Forward P/E of 19.03, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
Investors should also note that AMD has a PEG ratio of 0.65 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Integrated Systems was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 30, putting it in the top 13% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.