Advanced Micro Devices (AMD) closed the most recent trading day at $23.25, moving -0.17% from the previous trading session. This change lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.34%.
Heading into today, shares of the chipmaker had gained 0.69% over the past month, lagging the Computer and Technology sector's gain of 4.35% and the S&P 500's gain of 1.83% in that time.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. In that report, analysts expect AMD to post earnings of $0.05 per share. This would mark a year-over-year decline of 54.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.26 billion, down 23.78% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.64 per share and revenue of $6.79 billion. These totals would mark changes of +39.13% and +4.82%, respectively, from last year.
Investors might also notice 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.
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 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. The Zacks Consensus EPS estimate has moved 1.43% lower within the past month. AMD is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AMD is holding a Forward P/E ratio of 36.15. Its industry sports an average Forward P/E of 18.35, so we one might conclude that AMD is trading at a premium comparatively.
Meanwhile, AMD's PEG ratio is currently 1.3. 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 1.48 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 182, putting it in the bottom 29% 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.
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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