Advanced Micro Devices (AMD) Surpasses Market Returns: Some Facts Worth Knowing

The most recent trading session ended with Advanced Micro Devices (AMD) standing at $114.81, reflecting a +0.84% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.46%.

Heading into today, shares of the chipmaker had gained 5.31% over the past month, outpacing the Computer and Technology sector's loss of 5.94% and the S&P 500's loss of 3.59% in that time.

Investors will be eagerly watching for the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.93, signifying a 50% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.11 billion, up 29.98% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.59 per share and a revenue of $31.87 billion, signifying shifts of +38.67% and +23.61%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. Right now, Advanced Micro Devices possesses a Zacks Rank of #3 (Hold).

Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 24.8. This expresses a premium compared to the average Forward P/E of 14.91 of its industry.

Meanwhile, AMD's PEG ratio is currently 0.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 1.57.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.