Advanced Micro Devices (AMD) closed the latest trading day at $120.79, indicating a -1.35% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.9%.
Shares of the chipmaker witnessed a loss of 13.81% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.86% and the S&P 500's loss of 1.98%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is forecasted to report an EPS of $1.07, showcasing a 38.96% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $7.52 billion, indicating a 21.84% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.31 per share and a revenue of $25.66 billion, representing changes of +24.91% and +13.13%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Advanced Micro Devices possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 37.03. For comparison, its industry has an average Forward P/E of 14.6, which means Advanced Micro Devices is trading at a premium to the group.
It is also worth noting that AMD currently has a PEG ratio of 1.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.75 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpAdvanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
