Advanced Micro Devices (AMD - Free Report) closed at $27.97 in the latest trading session, marking a -0.75% move from the prior day. This change lagged the S&P 500's 0.88% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, added 1.32%.
Coming into today, shares of the chipmaker had gained 8.51% in the past month. In that same time, the Computer and Technology sector gained 5%, while the S&P 500 gained 3.96%.
AMD will be looking to display strength as it nears its next earnings release, which is expected to be April 30, 2019. 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%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for AMD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. AMD is currently a Zacks Rank #3 (Hold).
In terms of valuation, AMD is currently trading at a Forward P/E ratio of 43.75. This represents a premium compared to its industry's average Forward P/E of 19.53.
It is also worth noting that AMD currently has a PEG ratio of 1.43. 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 1.59 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 168, putting it in the bottom 35% 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.