Advanced Micro Devices (AMD - Free Report) closed at $48.17 in the latest trading session, marking a -1.64% move from the prior day. This move lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.27%.
Heading into today, shares of the chipmaker had gained 14.98% over the past month, outpacing the Computer and Technology sector's gain of 7.47% and the S&P 500's gain of 4.56% in that time.
AMD will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMD to post earnings of $0.30 per share. This would mark year-over-year growth of 275%. Our most recent consensus estimate is calling for quarterly revenue of $2.10 billion, up 48.09% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. AMD is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AMD is currently trading at a Forward P/E ratio of 44.79. Its industry sports an average Forward P/E of 24.3, so we one might conclude that AMD is trading at a premium comparatively.
Meanwhile, AMD's PEG ratio is currently 1.85. 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 2.14 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 86, putting it in the top 34% 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.