Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $32.17, moving -0.73% from the previous trading session. This change lagged the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.38%.
Prior to today's trading, shares of the chipmaker had gained 18.63% over the past month. This has outpaced the Computer and Technology sector's loss of 1.9% and the S&P 500's gain of 0.33% 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 $0.08, down 42.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.52 billion, down 13.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.66 per share and revenue of $6.89 billion. These totals would mark changes of +43.48% and +6.39%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AMD. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. The Zacks Consensus EPS estimate has moved 2.12% lower within the past month. AMD currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AMD is currently trading at a Forward P/E ratio of 48.92. This represents a premium compared to its industry's average Forward P/E of 17.25.
Also, we should mention that AMD has a PEG ratio of 1.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 1.65 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% 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.