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Advanced Micro Devices (AMD) Outpaces Stock Market Gains: What You Should Know
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Advanced Micro Devices (AMD - Free Report) closed at $31.53 in the latest trading session, marking a +1.86% move from the prior day. This change outpaced the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 1.41%, while the tech-heavy Nasdaq added 1.75%.
Heading into today, shares of the chipmaker had gained 6.03% over the past month, outpacing the Computer and Technology sector's loss of 0.14% and the S&P 500's gain of 0.46% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release. In that report, analysts expect AMD to post earnings of $0.19 per share. This would mark year-over-year growth of 46.15%. Meanwhile, our latest consensus estimate is calling for revenue of $1.80 billion, up 9.08% from the prior-year quarter.
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.
Investors should also note any recent changes to analyst estimates for AMD. These revisions help to show the ever-changing nature of near-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.51% lower. AMD is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 48.71. For comparison, its industry has an average Forward P/E of 19.29, which means AMD is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 2.06 right now. 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 2.06 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 92, putting it in the top 36% 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.
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Advanced Micro Devices (AMD) Outpaces Stock Market Gains: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed at $31.53 in the latest trading session, marking a +1.86% move from the prior day. This change outpaced the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 1.41%, while the tech-heavy Nasdaq added 1.75%.
Heading into today, shares of the chipmaker had gained 6.03% over the past month, outpacing the Computer and Technology sector's loss of 0.14% and the S&P 500's gain of 0.46% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release. In that report, analysts expect AMD to post earnings of $0.19 per share. This would mark year-over-year growth of 46.15%. Meanwhile, our latest consensus estimate is calling for revenue of $1.80 billion, up 9.08% from the prior-year quarter.
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.
Investors should also note any recent changes to analyst estimates for AMD. These revisions help to show the ever-changing nature of near-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.51% lower. AMD is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 48.71. For comparison, its industry has an average Forward P/E of 19.29, which means AMD is trading at a premium to the group.
Investors should also note that AMD has a PEG ratio of 2.06 right now. 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 2.06 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 92, putting it in the top 36% 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.