Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $32.57, moving -0.12% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.18%.
Coming into today, shares of the chipmaker had gained 29.1% in the past month. In that same time, the Computer and Technology sector gained 0.35%, while the S&P 500 gained 1.71%.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. This 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, our latest consensus estimate is calling for revenue of $1.71 billion, up 3.95% from the prior-year quarter.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $0.47 per share and revenue of $6.70 billion. These results would represent year-over-year changes of +176.47% and +25.67%, respectively.
Investors might also notice recent changes to analyst estimates for AMD. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Within the past 30 days, our consensus EPS projection has moved 0.78% lower. AMD currently has a Zacks Rank of #3 (Hold).
Digging into valuation, AMD currently has a Forward P/E ratio of 69.25. This valuation marks a premium compared to its industry's average Forward P/E of 18.6.
Also, we should mention that AMD has a PEG ratio of 4.95. 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.77 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 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.