Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $28.51, moving +1.57% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq lost 1.19%.
Coming into today, shares of the chipmaker had gained 43.46% in the past month. In that same time, the Computer and Technology sector gained 2.84%, while the S&P 500 gained 2.24%.
AMD will be looking to display strength as it nears its next earnings release, which is expected to be October 23, 2018. In that report, analysts expect AMD to post earnings of $0.12 per share. This would mark year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.71 billion, up 3.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.47 per share and revenue of $6.69 billion. These totals would mark changes of +176.47% and +25.53%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AMD. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, the Zacks Consensus EPS estimate has moved 1.21% lower. AMD currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AMD is currently trading at a Forward P/E ratio of 59.93. This represents a premium compared to its industry's average Forward P/E of 17.48.
Also, we should mention that AMD has a PEG ratio of 7.73. 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 Electronics - Semiconductors industry currently had an average PEG ratio of 1.54 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.