Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $28.03, moving -0.21% from the previous trading session. This change lagged the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.27%.
Coming into today, shares of the chipmaker had gained 4.77% in the past month. In that same time, the Computer and Technology sector lost 8.68%, while the S&P 500 lost 5.26%.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. In that report, analysts expect AMD to post earnings of $0.08 per share. This would mark a year-over-year decline of 42.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.52 billion, down 13.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.66 per share and revenue of $6.87 billion. These totals would mark changes of +43.48% and +6.17%, respectively, from last year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 5.68% higher. AMD is currently a Zacks Rank #3 (Hold).
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 42.35. This represents a premium compared to its industry's average Forward P/E of 16.97.
It is also worth noting that AMD currently has a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMD's industry had an average PEG ratio of 1.79 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 98, putting it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.