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Advanced Micro Devices (AMD) Ascends While Market Falls: Some Facts to Note
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In the latest close session, Advanced Micro Devices (AMD - Free Report) was up +2.77% at $519.73. The stock outpaced the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Prior to today's trading, shares of the chipmaker had gained 6.62% outpaced the Computer and Technology sector's gain of 0.4% and the S&P 500's loss of 0.97%.
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 $1.9 per share, which would represent year-over-year growth of 58.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.07 billion, up 41.38% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $7.49 per share and revenue of $50.45 billion. These results would represent year-over-year changes of +79.62% and +45.63%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 67.54 right now. Its industry sports an average Forward P/E of 21.61, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
We can also see that AMD currently has a PEG ratio of 4.5. 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. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 0.63.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Advanced Micro Devices (AMD) Ascends While Market Falls: Some Facts to Note
In the latest close session, Advanced Micro Devices (AMD - Free Report) was up +2.77% at $519.73. The stock outpaced the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Prior to today's trading, shares of the chipmaker had gained 6.62% outpaced the Computer and Technology sector's gain of 0.4% and the S&P 500's loss of 0.97%.
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 $1.9 per share, which would represent year-over-year growth of 58.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.07 billion, up 41.38% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $7.49 per share and revenue of $50.45 billion. These results would represent year-over-year changes of +79.62% and +45.63%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 67.54 right now. Its industry sports an average Forward P/E of 21.61, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
We can also see that AMD currently has a PEG ratio of 4.5. 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. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 0.63.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.