Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $45.70, moving +0.71% from the previous trading session. This change outpaced the S&P 500's 4.89% loss on the day. Meanwhile, the Dow lost 5.86%, and the Nasdaq, a tech-heavy index, lost 4.7%.
Prior to today's trading, shares of the chipmaker had lost 15.65% over the past month. This has lagged the Computer and Technology sector's loss of 13.39% and the S&P 500's loss of 13.88% in that time.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. On that day, AMD is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 200%. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, up 37.56% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $8.69 billion. These results would represent year-over-year changes of +75% and +29.17%, respectively.
Any recent changes to analyst estimates for AMD should also be noted by investors. 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. 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. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. AMD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AMD has a Forward P/E ratio of 40.68 right now. For comparison, its industry has an average Forward P/E of 16.39, which means AMD is trading at a premium to the group.
We can also see that AMD currently has a PEG ratio of 1.74. 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 1.73 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 27, putting it in the top 11% 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.