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

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In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $32.04, marking a +1.71% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.78%.

Prior to today's trading, shares of the chipmaker had lost 1.01% over the past month. This has lagged the Computer and Technology sector's gain of 8% and the S&P 500's gain of 5.97% in that time.

Investors will be hoping for strength from AMD as it approaches 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 13.36% from the prior-year quarter.

AMD's full-year Zacks Consensus Estimates are calling for earnings of $0.67 per share and revenue of $6.89 billion. These results would represent year-over-year changes of +45.65% and +6.44%, respectively.

Any recent changes to analyst estimates for AMD should also be noted by investors. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 1.35% lower. AMD is currently a Zacks Rank #3 (Hold).

Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 47.34. For comparison, its industry has an average Forward P/E of 18.45, which means AMD is trading at a premium to the group.

Also, we should mention that AMD has a PEG ratio of 1.54. 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 1.62 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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