Advanced Micro Devices (AMD) Gains But Lags Market: What You Should Know
In the latest trading session, Advanced Micro Devices (AMD) closed at $39.47, marking a +0.08% move from the previous day. The stock lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.44%.
Prior to today's trading, shares of the chipmaker had gained 7.44% over the past month. This has outpaced the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 1.51% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release. On that day, AMD is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 275%. Our most recent consensus estimate is calling for quarterly revenue of $2.10 billion, up 48.09% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $0.62 per share and revenue of $6.71 billion. These results would represent year-over-year changes of +34.78% and +3.55%, respectively.
Investors should also note any recent changes to analyst estimates for AMD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. AMD is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AMD is holding a Forward P/E ratio of 63.7. For comparison, its industry has an average Forward P/E of 22.88, which means AMD is trading at a premium to the group.
It is also worth noting that AMD currently has a PEG ratio of 2.63. 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. AMD's industry had an average PEG ratio of 2.59 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
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