Advanced Micro Devices (AMD) closed the most recent trading day at $32.85, moving +1.05% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.71%.
Prior to today's trading, shares of the chipmaker had gained 8.33% over the past month. This has outpaced the Computer and Technology sector's gain of 2.34% and the S&P 500's gain of 1.93% 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 July 30, 2019. In that report, analysts expect AMD to post earnings of $0.08 per share. This would mark a year-over-year decline of 42.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.52 billion, down 13.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.67 per share and revenue of $6.89 billion. These totals would mark changes of +45.65% and +6.43%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AMD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.75% higher. AMD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AMD currently has a Forward P/E ratio of 48.83. This valuation marks a premium compared to its industry's average Forward P/E of 18.24.
Also, we should mention that AMD has a PEG ratio of 1.59. 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 industry currently had an average PEG ratio of 1.61 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 64, which puts it in the top 25% 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.
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