Advanced Micro Devices (AMD) Stock Moves -0.63%: What You Should Know
Advanced Micro Devices (AMD) closed at $101.22 in the latest trading session, marking a -0.63% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.
Heading into today, shares of the chipmaker had gained 11.77% over the past month, outpacing the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.32% in that time.
Wall Street will be looking for positivity from Advanced Micro Devices as it approaches its next earnings report date. The company is expected to report EPS of $1.02, up 61.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, up 69.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.34 per share and revenue of $25.92 billion, which would represent changes of +55.56% and +57.71%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 6.97% higher. Advanced Micro Devices is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 23.46. Its industry sports an average Forward P/E of 16.45, so we one might conclude that Advanced Micro Devices is trading at a premium comparatively.
It is also worth noting that AMD currently has a PEG ratio of 0.71. 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. AMD's industry had an average PEG ratio of 1.9 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 106, which puts it in the top 42% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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.
