The most recent trading session ended with Advanced Micro Devices (AMD) standing at $125.02, reflecting a -1.32% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.39%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq depreciated by 0.32%.
The chipmaker's stock has dropped by 8.81% in the past month, falling short of the Computer and Technology sector's gain of 7.63% and the S&P 500's gain of 3.6%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. On that day, Advanced Micro Devices is projected to report earnings of $1.07 per share, which would represent year-over-year growth of 38.96%. At the same time, our most recent consensus estimate is projecting a revenue of $7.51 billion, reflecting a 21.83% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.31 per share and revenue of $25.67 billion, indicating changes of +24.91% and +13.2%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-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 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% higher. Advanced Micro Devices presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Advanced Micro Devices is presently being traded at a Forward P/E ratio of 38.32. This expresses a premium compared to the average Forward P/E of 15.53 of its industry.
Also, we should mention that AMD has a PEG ratio of 1.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 1.79.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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