Advanced Micro Devices (AMD - Free Report) closed at $54.46 in the latest trading session, marking a -0.4% move from the prior day. This change lagged the S&P 500's daily gain of 1.9%. Elsewhere, the Dow gained 2.05%, while the tech-heavy Nasdaq added 1.75%.
AMD will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMD to post earnings of $0.16 per share. This would mark year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.85 billion, up 21% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.01 per share and revenue of $8.39 billion. These totals would mark changes of +57.81% and +24.69%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AMD. These recent revisions tend to reflect the evolving nature of short-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. 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 remained stagnant. AMD is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 54.04. This represents a premium compared to its industry's average Forward P/E of 21.16.
Also, we should mention that AMD has a PEG ratio of 1.34. 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 1.67 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 44, putting it in the top 18% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.