Advanced Micro Devices (AMD) closed the most recent trading day at $46.18, moving -0.97% from the previous trading session. This change lagged the S&P 500's daily of 0%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the chipmaker had gained 18.32% over the past month. This has outpaced the Computer and Technology sector's gain of 4.19% and the S&P 500's gain of 3.37% in that time.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. On that day, AMD is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 275%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.10 billion, up 48.09% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $0.62 per share and revenue of $6.71 billion. These results would represent year-over-year changes of +34.78% and +3.56%, respectively.
Investors should also note any recent changes to analyst estimates for AMD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AMD is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, AMD is currently trading at a Forward P/E ratio of 75.31. Its industry sports an average Forward P/E of 24.26, so we one might conclude that AMD is trading at a premium comparatively.
It is also worth noting that AMD currently has a PEG ratio of 3.11. 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 industry currently had an average PEG ratio of 2.74 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
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