Advanced Micro Devices (AMD) closed at $28.93 in the latest trading session, marking a -0.28% move from the prior day. This change was narrower than the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.33%.
Heading into today, shares of the chipmaker had lost 7.9% over the past month, lagging the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 0.59% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release. In that report, analysts expect AMD to post earnings of $0.18 per share. This would mark year-over-year growth of 38.46%. Meanwhile, our latest consensus estimate is calling for revenue of $1.80 billion, up 9.08% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.63 per share and revenue of $6.76 billion. These totals would mark changes of +36.96% and +4.43%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. AMD is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AMD is holding a Forward P/E ratio of 46.17. This represents a premium compared to its industry's average Forward P/E of 19.54.
Investors should also note that AMD has a PEG ratio of 1.96 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
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