Advanced Micro Devices (AMD) closed at $19.21 in the latest trading session, marking a +0.52% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.82%. At the same time, the Dow lost 2.21%, and the tech-heavy Nasdaq lost 1.7%.
Prior to today's trading, shares of the chipmaker had lost 23.65% over the past month. This has lagged the Computer and Technology sector's loss of 5.96% and the S&P 500's loss of 2.57% in that time.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. This is expected to be January 29, 2019. In that report, analysts expect AMD to post earnings of $0.09 per share. This would mark year-over-year growth of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $1.45 billion, down 1.78% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $6.54 billion. These results would represent year-over-year changes of +170.59% and +22.65%, respectively.
Investors should also note any recent changes to analyst estimates for AMD. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 8.55% lower. AMD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AMD currently has a Forward P/E ratio of 41.39. This valuation marks a premium compared to its industry's average Forward P/E of 15.82.
Meanwhile, AMD's PEG ratio is currently 2.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.39 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
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