Advanced Micro Devices (AMD) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
3 min read
0
In this article:

Advanced Micro Devices (AMD) closed the most recent trading day at $78.72, moving -1.89% from the previous trading session. This move lagged the S&P 500's daily loss of 0.41%.

Coming into today, shares of the chipmaker had lost 19.82% in the past month. In that same time, the Computer and Technology sector lost 9.08%, while the S&P 500 lost 5.13%.

Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. On that day, Advanced Micro Devices is projected to report earnings of $1.06 per share, which would represent year-over-year growth of 45.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.71 billion, up 55.53% from the year-ago period.

AMD's full-year Zacks Consensus Estimates are calling for earnings of $4.37 per share and revenue of $26.22 billion. These results would represent year-over-year changes of +56.63% and +59.56%, respectively.

Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 0.28% lower. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).

Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 18.38. This represents a premium compared to its industry's average Forward P/E of 14.27.

We can also see that AMD currently has a PEG ratio of 0.66. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement

Recommended Stories

  • Dow Jones Falls As Donald Trump Stock Craters; Cathie Wood Buys This Stock Amid 51% Plunge

    The Dow Jones fell as Elon Musk made a Tesla move. The Donald Trump stock sank on the stock market today. Cathie Wood bought a diving stock.

  • Trump Media stock tanks on move to issue millions of shares

    Trump Media stock slid as much as 16% on Monday after the parent company of Donald Trump's social media platform, Truth Social, filed to issue more than 21 million shares.

  • 4 Oversold Stocks to Buy Right Now

    Here are four stocks to buy now that could offer investors upside in the short and long term.

  • Wall Street Selloff Goes Global Amid US Rate Angst: Markets Wrap

    (Bloomberg) -- A selloff on Wall Street went global as investors grappled with the threat of higher-for-longer interest rates, China’s sluggish economy and an Israeli counter-strike. Most Read from BloombergBeyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROIIran’s Attack on Israel Sparks Race to Avert a Full-Blown WarApple Faces Worst iPhone Slump Since Covid as Rivals RiseIsrael Versus Iran — What All-Out War Could Look LikeTesla Executive Baglino Leaves as Musk Lose

  • Nvidia Reveals 8 'Secrets' For When To Sell Stocks. No. 2 Is Key.

    As top growth stocks like Nvidia test key moving averages, keep in mind these proven rules for when to sell stocks.

  • Elon Musk Agrees With Jamie Dimon's Warning Of Political Polarization 'Creating Risks That Could Eclipse Anything Since World War II'

    JP Morgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon's annual shareholder letter is a moment investors await to understand the thinking of one of the world's most influential bankers. While there has been speculation of Dimon entering politics, with him even gaining the support of billionaire hedge fund manager Bill Ackman to run for president, JP Morgan shared in a statement that "Jamie has no plans to run for office" and that "he is very happy in his current role." That has not stopped him from oc

  • Tesla layoffs hit high performers, some departments slashed, sources say

    Tesla management told employees Monday that the recent layoffs -- which gutted some departments by 20% and even hit high performers -- were largely due to poor financial performance, a source familiar with the matter told TechCrunch. The layoffs were announced to staff just a week before Tesla is scheduled to report its first-quarter earnings. The move comes as Tesla has seen its profit margin narrow over the past several quarters, the result of an EV price war that has persisted for at least a year.

  • Not-So-Happy Meal: $20 Wages Has Burger Joints In This State All Heated

    California fast-food employees started earning a minimum of $20 an hour in April. Thanks to a new law, which went into effect earlier this month, California chain restaurants with at least 60 locations nationwide have to pay their employees more. For smaller restaurants, the minimum wage continues to be the statewide bottom of $16 an hour. The largest publicly-traded fast-food companies include McDonald’s Corp (NYSE:MCD); Starbucks Corp (NASDAQ:SBUX); Yum! Brands, Inc. (NYSE:YUM), which owns Tac

  • 1 Stock I Wouldn't Touch With a 10-Foot Pole

    I am a dividend investor, and I prize dividend consistency. I just can't trust what this high-yield income stock says about its dividend.

  • Xiaomi’s Success Means More Trouble for Battered China EV Stocks

    (Bloomberg) -- Xiaomi Corp.’s roaring entry into the electric vehicle market is dimming the recovery outlook for China’s beaten down auto startups.Most Read from BloombergBeyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROIIran’s Attack on Israel Sparks Race to Avert a Full-Blown WarApple Faces Worst iPhone Slump Since Covid as Rivals RiseIsrael Versus Iran — What All-Out War Could Look LikeTesla Executive Baglino Leaves as Musk Loses Another Top DeputyHype around the