In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $19.90, marking a -1.63% move from the previous day. This move lagged the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, lost 0.38%.
Prior to today's trading, shares of the chipmaker had lost 27.18% over the past month. This has lagged the Computer and Technology sector's loss of 8.65% and the S&P 500's loss of 6.76% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release, which is expected to be January 29, 2019. The company is expected to report EPS of $0.09, up 12.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.45 billion, down 1.78% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $6.54 billion. These results would represent year-over-year changes of +170.59% and +22.65%, respectively.
Investors should also note any recent changes to analyst estimates for AMD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 8.55% lower within the past month. AMD is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 43.82. This valuation marks a premium compared to its industry's average Forward P/E of 18.13.
Investors should also note that AMD has a PEG ratio of 3.13 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 Electronics - Semiconductors industry currently had an average PEG ratio of 1.51 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 101, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.