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Why the Market Dipped But Advanced Micro Devices (AMD) Gained Today
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Advanced Micro Devices (AMD - Free Report) closed at $504.19 in the latest trading session, marking a +2.18% move from the prior day. This move outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.78%.
Prior to today's trading, shares of the chipmaker had lost 2.49% lagged the Computer and Technology sector's loss of 1.27% and the S&P 500's loss of 1.99%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company's upcoming EPS is projected at $1.9, signifying a 58.33% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.06 billion, reflecting a 41.3% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.48 per share and revenue of $50.5 billion. These totals would mark changes of +79.38% and +45.79%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been a 0.18% fall in the Zacks Consensus EPS estimate. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 65.97. Its industry sports an average Forward P/E of 20.72, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
Meanwhile, AMD's PEG ratio is currently 4.4. 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 Computer - Integrated Systems industry had an average PEG ratio of 0.59 as trading concluded yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 13% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Why the Market Dipped But Advanced Micro Devices (AMD) Gained Today
Advanced Micro Devices (AMD - Free Report) closed at $504.19 in the latest trading session, marking a +2.18% move from the prior day. This move outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.78%.
Prior to today's trading, shares of the chipmaker had lost 2.49% lagged the Computer and Technology sector's loss of 1.27% and the S&P 500's loss of 1.99%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company's upcoming EPS is projected at $1.9, signifying a 58.33% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.06 billion, reflecting a 41.3% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.48 per share and revenue of $50.5 billion. These totals would mark changes of +79.38% and +45.79%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been a 0.18% fall in the Zacks Consensus EPS estimate. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 65.97. Its industry sports an average Forward P/E of 20.72, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
Meanwhile, AMD's PEG ratio is currently 4.4. 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 Computer - Integrated Systems industry had an average PEG ratio of 0.59 as trading concluded yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 13% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.