Advanced Micro Devices (AMD - Free Report) closed at $28.53 in the latest trading session, marking a -1.55% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq added 0.19%.
Coming into today, shares of the chipmaker had gained 31.25% in the past month. In that same time, the Computer and Technology sector gained 5.46%, while the S&P 500 gained 3.84%.
AMD will be looking to display strength as it nears its next earnings release. On that day, AMD is projected to report earnings of $0.05 per share, which would represent a year-over-year decline of 54.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.26 billion, down 23.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.64 per share and revenue of $6.79 billion, which would represent changes of +39.13% and +4.82%, respectively, from the prior 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMD is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, AMD currently has a Forward P/E ratio of 44.99. This represents a premium compared to its industry's average Forward P/E of 19.56.
It is also worth noting that AMD currently has a PEG ratio of 1.61. 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. AMD's industry had an average PEG ratio of 1.65 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 226, putting it in the bottom 12% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.