Advanced Micro Devices (AMD - Free Report) closed at $22.01 in the latest trading session, marking a -0.32% move from the prior day. This change lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the chipmaker had lost 2.6% in the past month. In that same time, the Computer and Technology sector gained 2.89%, while the S&P 500 gained 1.81%.
Investors will be hoping for strength from AMD as it approaches its next earnings release. On that day, AMD is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 75%. Meanwhile, our latest consensus estimate is calling for revenue of $1.26 billion, down 23.78% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $6.79 billion. These totals would mark changes of +47.5% and +4.82%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AMD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 1.43% lower within the past month. AMD is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, AMD is currently trading at a Forward P/E ratio of 34.28. This represents a premium compared to its industry's average Forward P/E of 17.58.
Investors should also note that AMD has a PEG ratio of 1.61 right now. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.