Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $17.82, moving +1.89% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the chipmaker had lost 18.39% over the past month. This has lagged the Computer and Technology sector's loss of 4.42% and the S&P 500's loss of 6.96% in that time.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. This is expected to be January 29, 2019. On that day, AMD is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 12.5%. Meanwhile, our latest consensus estimate is calling for revenue of $1.45 billion, down 2.34% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.46 per share and revenue of $6.50 billion. These totals would mark changes of +170.59% and +22%, respectively, from last year.
Any recent changes to analyst estimates for AMD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.72% 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 38.09. Its industry sports an average Forward P/E of 14.48, so we one might conclude that AMD is trading at a premium comparatively.
Meanwhile, AMD's PEG ratio is currently 2.72. 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 was holding an average PEG ratio of 1.28 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 32% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.