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Advanced Micro Devices (AMD) Gains As Market Dips: What You Should Know

Advanced Micro Devices (AMD) closed the most recent trading day at $74.91, moving +0.28% from the previous trading session. This change outpaced the S&P 500's 0.02% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.44%.

Prior to today's trading, shares of the chipmaker had gained 18.07% over the past month. This has outpaced the Computer and Technology sector's gain of 11.1% and the S&P 500's gain of 4.57% in that time.

Wall Street will be looking for positivity from Advanced Micro Devices as it approaches its next earnings report date. This is expected to be January 31, 2023. On that day, Advanced Micro Devices is projected to report earnings of $0.67 per share, which would represent a year-over-year decline of 27.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.51 billion, up 14.22% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.06% lower within the past month. Advanced Micro Devices is currently a Zacks Rank #4 (Sell).

Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 21.53. This represents a premium compared to its industry's average Forward P/E of 19.55.

Meanwhile, AMD's PEG ratio is currently 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 2.97 at yesterday's closing price.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% 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.

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

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