Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $26.76, moving +1.52% from the previous trading session. This move outpaced the S&P 500's daily of 0%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq added 0.25%.
Prior to today's trading, shares of the chipmaker had gained 12.79% over the past month. This has outpaced the Computer and Technology sector's gain of 3.92% and the S&P 500's gain of 2.36% in that time.
AMD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.05, down 54.55% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.26 billion, down 23.78% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.64 per share and revenue of $6.79 billion. These totals would mark changes of +39.13% and +4.82%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AMD. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 remained stagnant within the past month. AMD is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AMD has a Forward P/E ratio of 40.92 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.87.
Also, we should mention that AMD has a PEG ratio of 1.47. 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 1.53 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 19% 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.