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Advanced Micro Devices (AMD) Stock Sinks As Market Gains: What You Should Know

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Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $29.50, moving -0.24% from the previous trading session. This change lagged the S&P 500's 0.82% gain on the day. Elsewhere, the Dow gained 0.82%, while the tech-heavy Nasdaq added 0.64%.

Heading into today, shares of the chipmaker had gained 10.91% over the past month, outpacing the Computer and Technology sector's loss of 8.68% and the S&P 500's loss of 4.58% in that time.

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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.67 per share and revenue of $6.87 billion, which would represent changes of +45.65% and +6.17%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AMD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMD is currently a Zacks Rank #3 (Hold).

Digging into valuation, AMD currently has a Forward P/E ratio of 44.19. For comparison, its industry has an average Forward P/E of 17.22, which means AMD is trading at a premium to the group.

It is also worth noting that AMD currently has a PEG ratio of 1.44. 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 1.66 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 83, putting it in the top 33% 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.

To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.


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