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Super Micro Computer (SMCI) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest trading session, Super Micro Computer (SMCI - Free Report) closed at $41.79, marking a -3.41% move from the previous day. This change lagged the S&P 500's daily loss of 0.77%. Meanwhile, the Dow experienced a drop of 0.67%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
Prior to today's trading, shares of the server technology company had gained 16.67% outpaced the Computer and Technology sector's gain of 6.26% and the S&P 500's gain of 0.96%.
Analysts and investors alike will be keeping a close eye on the performance of Super Micro Computer in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.06, indicating a 202.86% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $14.77 billion, up 194.32% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.43 per share and revenue of $67.12 billion, which would represent changes of +22.04% and +71.82%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Super Micro Computer. These revisions help to show the ever-changing nature of 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Super Micro Computer possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 9.77. This denotes a discount relative to the industry average Forward P/E of 10.69.
One should further note that SMCI currently holds a PEG ratio of 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer- Storage Devices was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest trading session, Super Micro Computer (SMCI - Free Report) closed at $41.79, marking a -3.41% move from the previous day. This change lagged the S&P 500's daily loss of 0.77%. Meanwhile, the Dow experienced a drop of 0.67%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
Prior to today's trading, shares of the server technology company had gained 16.67% outpaced the Computer and Technology sector's gain of 6.26% and the S&P 500's gain of 0.96%.
Analysts and investors alike will be keeping a close eye on the performance of Super Micro Computer in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.06, indicating a 202.86% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $14.77 billion, up 194.32% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.43 per share and revenue of $67.12 billion, which would represent changes of +22.04% and +71.82%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Super Micro Computer. These revisions help to show the ever-changing nature of 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Super Micro Computer possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 9.77. This denotes a discount relative to the industry average Forward P/E of 10.69.
One should further note that SMCI currently holds a PEG ratio of 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer- Storage Devices was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.