Super Micro Computer (SMCI) closed the latest trading day at $27.80, indicating a -1.35% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq decreased by 0.51%.
The server technology company's stock has dropped by 7.55% in the past month, falling short of the Computer and Technology sector's loss of 0.19% and the S&P 500's gain of 1.67%.
Investors will be eagerly watching for the performance of Super Micro Computer in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.75, indicating a 33.93% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.8 billion, up 58.32% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.16 per share and a revenue of $24.05 billion, demonstrating changes of +42.99% and +60.95%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Super Micro Computer. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Super Micro Computer is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Super Micro Computer is presently being traded at a Forward P/E ratio of 8.93. For comparison, its industry has an average Forward P/E of 13.93, which means Super Micro Computer is trading at a discount to the group.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 160, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Super Micro Computer, Inc. (SMCI) : 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.
