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Why Advanced Micro Devices (AMD) Outpaced the Stock Market Today
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Advanced Micro Devices (AMD - Free Report) closed at $649.42 in the latest trading session, marking a +2.8% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.45%.
The chipmaker's shares have seen an increase of 32.28% over the last month, surpassing the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 0.84%.
Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. 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%. In the meantime, our current consensus estimate forecasts the revenue to be $13.06 billion, indicating a 41.3% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.48 per share and revenue of $50.5 billion, indicating changes of +79.38% and +45.79%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% lower. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 84.49. This represents a premium compared to its industry average Forward P/E of 21.28.
Investors should also note that AMD has a PEG ratio of 5.63 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Integrated Systems industry currently had an average PEG ratio of 0.53 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Why Advanced Micro Devices (AMD) Outpaced the Stock Market Today
Advanced Micro Devices (AMD - Free Report) closed at $649.42 in the latest trading session, marking a +2.8% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.45%.
The chipmaker's shares have seen an increase of 32.28% over the last month, surpassing the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 0.84%.
Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. 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%. In the meantime, our current consensus estimate forecasts the revenue to be $13.06 billion, indicating a 41.3% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.48 per share and revenue of $50.5 billion, indicating changes of +79.38% and +45.79%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% lower. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 84.49. This represents a premium compared to its industry average Forward P/E of 21.28.
Investors should also note that AMD has a PEG ratio of 5.63 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Integrated Systems industry currently had an average PEG ratio of 0.53 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.