In the latest trading session, Advanced Micro Devices (AMD) closed at $82, marking a -1.41% move from the previous day. This change was narrower than the S&P 500's 1.63% loss on the day. Meanwhile, the Dow lost 1.44%, and the Nasdaq, a tech-heavy index, lost 1.65%.
Heading into today, shares of the chipmaker had gained 8.65% over the past month, outpacing the Computer and Technology sector's gain of 5.81% and the S&P 500's gain of 2.86% in that time.
AMD will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2020. In that report, analysts expect AMD to post earnings of $0.36 per share. This would mark year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $2.56 billion, up 41.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.10 per share and revenue of $8.89 billion, which would represent changes of +71.88% and +32.03%, respectively, from the prior year.
Any recent changes to analyst estimates for AMD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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 0.05% lower within the past month. AMD is currently a Zacks Rank #3 (Hold).
Digging into valuation, AMD currently has a Forward P/E ratio of 75.45. This valuation marks a premium compared to its industry's average Forward P/E of 22.58.
We can also see that AMD currently has a PEG ratio of 1.65. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.8 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 110, putting it in the top 44% 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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