Advanced Micro Devices (AMD) closed the most recent trading day at $157.90, moving +1.24% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.27%.
Prior to today's trading, shares of the chipmaker had gained 0.01% over the past month. This has lagged the Computer and Technology sector's gain of 6.6% and the S&P 500's gain of 4.46% in that time.
The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. The company's earnings per share (EPS) are projected to be $0.91, reflecting a 30% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.71 billion, up 15.72% from the prior-year quarter.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.36 per share and revenue of $25.56 billion. These results would represent year-over-year changes of +26.79% and +12.69%, respectively.
Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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, the Zacks Consensus EPS estimate has shifted 0.02% downward. 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 46.46. Its industry sports an average Forward P/E of 16.2, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
Investors should also note that AMD has a PEG ratio of 1.62 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Integrated Systems industry stood at 3.37 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 172, putting it in the bottom 32% 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.
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