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Super Micro Computer (SMCI) Suffers a Larger Drop Than the General Market: Key Insights
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Super Micro Computer (SMCI - Free Report) closed at $33.32 in the latest trading session, marking a -6.03% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.44%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 2.22%.
Prior to today's trading, shares of the server technology company had lost 0.34% lagged the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. In that report, analysts expect Super Micro Computer to post earnings of $0.7 per share. This would mark year-over-year growth of 70.73%. Alongside, our most recent consensus estimate is anticipating revenue of $11.71 billion, indicating a 103.47% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.56 per share and revenue of $39.67 billion, which would represent changes of +24.27% and +80.55%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Super Micro Computer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% downward. Super Micro Computer currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 13.85. This signifies a discount in comparison to the average Forward P/E of 26.23 for its industry.
It is also worth noting that SMCI currently has a PEG ratio of 0.49. 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. The average PEG ratio for the Computer- Storage Devices industry stood at 1.47 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 6, positioning it in the top 3% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Super Micro Computer (SMCI) Suffers a Larger Drop Than the General Market: Key Insights
Super Micro Computer (SMCI - Free Report) closed at $33.32 in the latest trading session, marking a -6.03% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.44%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 2.22%.
Prior to today's trading, shares of the server technology company had lost 0.34% lagged the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. In that report, analysts expect Super Micro Computer to post earnings of $0.7 per share. This would mark year-over-year growth of 70.73%. Alongside, our most recent consensus estimate is anticipating revenue of $11.71 billion, indicating a 103.47% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.56 per share and revenue of $39.67 billion, which would represent changes of +24.27% and +80.55%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Super Micro Computer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% downward. Super Micro Computer currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 13.85. This signifies a discount in comparison to the average Forward P/E of 26.23 for its industry.
It is also worth noting that SMCI currently has a PEG ratio of 0.49. 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. The average PEG ratio for the Computer- Storage Devices industry stood at 1.47 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 6, positioning it in the top 3% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.