We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Advanced Micro Devices (AMD) Fell More Than Broader Market
Read MoreHide Full Article
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $513.58, marking a -6.97% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.
Coming into today, shares of the chipmaker had gained 12.59% in the past month. In that same time, the Computer and Technology sector gained 0.38%, while the S&P 500 gained 2.14%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. On that day, Advanced Micro Devices is projected to report earnings of $1.6 per share, which would represent 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.18 per share and revenue of $48.8 billion, indicating changes of +72.18% and +40.87%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Advanced Micro Devices possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Advanced Micro Devices is currently being traded at a Forward P/E ratio of 76.93. Its industry sports an average Forward P/E of 27.52, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
It's also important to note that AMD currently trades at a PEG ratio of 1.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.03 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 5, placing it within the top 3% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Advanced Micro Devices (AMD) Fell More Than Broader Market
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $513.58, marking a -6.97% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.
Coming into today, shares of the chipmaker had gained 12.59% in the past month. In that same time, the Computer and Technology sector gained 0.38%, while the S&P 500 gained 2.14%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. On that day, Advanced Micro Devices is projected to report earnings of $1.6 per share, which would represent 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.18 per share and revenue of $48.8 billion, indicating changes of +72.18% and +40.87%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Advanced Micro Devices possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Advanced Micro Devices is currently being traded at a Forward P/E ratio of 76.93. Its industry sports an average Forward P/E of 27.52, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
It's also important to note that AMD currently trades at a PEG ratio of 1.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.03 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 5, placing it within the top 3% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.