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

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In the latest trading session, Advanced Micro Devices (AMD) closed at $81.57, marking a -0.59% move from the previous day. This change lagged the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.22%.

Prior to today's trading, shares of the chipmaker had lost 12.76% over the past month. This has lagged the Computer and Technology sector's loss of 9.55% and the S&P 500's loss of 10.02% in that time.

Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $1.03 per share. This would mark year-over-year growth of 63.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, up 69.29% from the year-ago period.

AMD's full-year Zacks Consensus Estimates are calling for earnings of $4.37 per share and revenue of $26.36 billion. These results would represent year-over-year changes of +56.63% and +60.4%, respectively.

Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.79% higher within the past month. Advanced Micro Devices is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Advanced Micro Devices is holding a Forward P/E ratio of 18.65. This valuation marks a premium compared to its industry's average Forward P/E of 14.33.

Investors should also note that AMD has a PEG ratio of 0.57 right now. 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 1.63 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 84, putting it in the top 34% 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.

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

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