Advanced Micro Devices (AMD) Stock Sinks As Market Gains: What You Should Know
Advanced Micro Devices (AMD) closed the most recent trading day at $177.10, moving -0.89% from the previous trading session. This move lagged the S&P 500's daily gain of 0.07%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.14%.
The chipmaker's stock has climbed by 11.44% in the past month, exceeding the Computer and Technology sector's gain of 8.61% and the S&P 500's gain of 4.34%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 13.79% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.71 billion, up 6.54% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.41 per share and a revenue of $25.29 billion, representing changes of +28.68% and +11.51%, 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 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 52.39. This expresses a premium compared to the average Forward P/E of 37.94 of its industry.
Also, we should mention that AMD has a PEG ratio of 1.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 2.92 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
