In the latest trading session, Advanced Micro Devices (AMD) closed at $95.96, marking a -1.46% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.47%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, lost 1.57%.
Heading into today, shares of the chipmaker had lost 5.1% over the past month, lagging the Computer and Technology sector's loss of 1.46% and the S&P 500's loss of 1.43% 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 $0.68, up 1.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.71 billion, up 2.53% from the prior-year quarter.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $2.74 per share and revenue of $22.82 billion. These results would represent year-over-year changes of -21.71% and -3.32%, respectively.
Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Advanced Micro Devices currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 35.55. For comparison, its industry has an average Forward P/E of 26.41, which means Advanced Micro Devices is trading at a premium to the group.
It is also worth noting that AMD currently has a PEG ratio of 3.97. 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. The Electronics - Semiconductors was holding an average PEG ratio of 4.63 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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