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.
Advanced Micro Devices (AMD) Suffers a Larger Drop Than the General Market: Key Insights
Read MoreHide Full Article
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $608.20, marking a -3.56% move from the previous day. This change lagged the S&P 500's 0.77% loss on the day. Elsewhere, the Dow saw a downswing of 0.67%, while the tech-heavy Nasdaq depreciated by 0.92%.
Prior to today's trading, shares of the chipmaker had gained 35.45% outpaced the Computer and Technology sector's gain of 6.26% and the S&P 500's gain of 0.96%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is predicted to post an EPS of $1.9, indicating a 58.33% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $13.06 billion, up 41.3% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.48 per share and revenue of $50.5 billion, which would represent changes of +79.38% and +45.79%, respectively, from the prior year.
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, 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 moved 0.18% lower. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 84.34. Its industry sports an average Forward P/E of 21.53, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
We can additionally observe that AMD currently boasts a PEG ratio of 5.62. 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 0.68.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 19% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Advanced Micro Devices (AMD) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $608.20, marking a -3.56% move from the previous day. This change lagged the S&P 500's 0.77% loss on the day. Elsewhere, the Dow saw a downswing of 0.67%, while the tech-heavy Nasdaq depreciated by 0.92%.
Prior to today's trading, shares of the chipmaker had gained 35.45% outpaced the Computer and Technology sector's gain of 6.26% and the S&P 500's gain of 0.96%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is predicted to post an EPS of $1.9, indicating a 58.33% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $13.06 billion, up 41.3% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.48 per share and revenue of $50.5 billion, which would represent changes of +79.38% and +45.79%, respectively, from the prior year.
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, 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 moved 0.18% lower. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 84.34. Its industry sports an average Forward P/E of 21.53, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
We can additionally observe that AMD currently boasts a PEG ratio of 5.62. 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 0.68.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 19% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.