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Here's Why Advanced Micro Devices (AMD) Fell More Than Broader Market
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Advanced Micro Devices (AMD - Free Report) ended the recent trading session at $452.21, demonstrating a -4.9% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.62%. Elsewhere, the Dow saw a downswing of 1.87%, while the tech-heavy Nasdaq depreciated by 1.98%.
Shares of the chipmaker have appreciated by 6.07% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.74%, and the S&P 500's loss of 0.03%.
Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. In that report, analysts expect Advanced Micro Devices to post earnings of $1.6 per share. This would mark year-over-year growth of 233.33%. Alongside, our most recent consensus estimate is anticipating revenue of $11.27 billion, indicating a 46.67% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.21 per share and revenue of $48.69 billion. These totals would mark changes of +72.9% and +40.57%, respectively, from last year.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.43% upward. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Advanced Micro Devices is presently being traded at a Forward P/E ratio of 65.95. This denotes a premium relative to the industry average Forward P/E of 26.71.
It is also worth noting that AMD currently has a PEG ratio of 1.2. 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 the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 0.9.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 23, positioning it in the top 10% 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why Advanced Micro Devices (AMD) Fell More Than Broader Market
Advanced Micro Devices (AMD - Free Report) ended the recent trading session at $452.21, demonstrating a -4.9% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.62%. Elsewhere, the Dow saw a downswing of 1.87%, while the tech-heavy Nasdaq depreciated by 1.98%.
Shares of the chipmaker have appreciated by 6.07% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.74%, and the S&P 500's loss of 0.03%.
Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. In that report, analysts expect Advanced Micro Devices to post earnings of $1.6 per share. This would mark year-over-year growth of 233.33%. Alongside, our most recent consensus estimate is anticipating revenue of $11.27 billion, indicating a 46.67% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.21 per share and revenue of $48.69 billion. These totals would mark changes of +72.9% and +40.57%, respectively, from last year.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.43% upward. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Advanced Micro Devices is presently being traded at a Forward P/E ratio of 65.95. This denotes a premium relative to the industry average Forward P/E of 26.71.
It is also worth noting that AMD currently has a PEG ratio of 1.2. 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 the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 0.9.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 23, positioning it in the top 10% 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.