Advanced Micro Devices (AMD) closed the most recent trading day at $93.16, moving -0.08% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq gained 0.51%.
Coming into today, shares of the chipmaker had gained 9.28% in the past month. In that same time, the Computer and Technology sector gained 6.68%, while the S&P 500 gained 4%.
AMD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.46, up 43.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3 billion, up 41.27% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.23 per share and revenue of $9.52 billion. These totals would mark changes of +92.19% and +41.49%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AMD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AMD is currently a Zacks Rank #3 (Hold).
In terms of valuation, AMD is currently trading at a Forward P/E ratio of 75.95. This valuation marks a premium compared to its industry's average Forward P/E of 29.09.
We can also see that AMD currently has a PEG ratio of 1.53. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.53 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 86, putting it in the top 34% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research