In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $48.60, marking a -1.02% move from the previous day. This change lagged the S&P 500's 0.71% loss on the day. Elsewhere, the Dow lost 0.81%, while the tech-heavy Nasdaq lost 0.79%.
Prior to today's trading, shares of the chipmaker had gained 23.93% over the past month. This has outpaced the Computer and Technology sector's gain of 7.25% and the S&P 500's gain of 4.77% 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 $0.30, up 275% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.10 billion, up 48.09% from the prior-year quarter.
Investors should also note any 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.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.21% lower within the past month. AMD currently has a Zacks Rank of #3 (Hold).
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 44.91. Its industry sports an average Forward P/E of 22.54, so we one might conclude that AMD is trading at a premium comparatively.
Meanwhile, AMD's PEG ratio is currently 1.86. 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 was holding an average PEG ratio of 2.05 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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.