Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $31.45, making no change from the previous trading session. This change lagged the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.13%.
Coming into today, shares of the chipmaker had gained 5.32% in the past month. In that same time, the Computer and Technology sector lost 4.41%, while the S&P 500 lost 2.95%.
AMD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.19, up 46.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.80 billion, up 9.08% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.64 per share and revenue of $6.76 billion. These totals would mark changes of +39.13% and +4.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AMD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 7.56% lower. AMD is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 49.5. This valuation marks a premium compared to its industry's average Forward P/E of 18.83.
Also, we should mention that AMD has a PEG ratio of 2.1. 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 2.1 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 102, putting it in the top 40% 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.