In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $39.82, marking a +1.79% move from the previous day. This move outpaced the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.95%, and the tech-heavy Nasdaq gained 2.3%.
Heading into today, shares of the chipmaker had lost 33.58% over the past month, lagging the Computer and Technology sector's loss of 28.18% and the S&P 500's loss of 28.7% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release. On that day, AMD is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 200%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.75 billion, up 37.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.12 per share and revenue of $8.69 billion. These totals would mark changes of +75% and +29.17%, respectively, from last year.
Investors might also notice 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. AMD is currently a Zacks Rank #3 (Hold).
Digging into valuation, AMD currently has a Forward P/E ratio of 35.07. This represents a premium compared to its industry's average Forward P/E of 12.55.
Also, we should mention that AMD has a PEG ratio of 1.5. 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 1.44 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 42, putting it in the top 17% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.