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Amkor Technology (AMKR) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Amkor Technology (AMKR) closed at $12.31, marking a +1.23% move from the previous day. This change outpaced the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 2.51%.

Heading into today, shares of the chip packaging and test services provider had gained 0.66% over the past month, lagging the Computer and Technology sector's gain of 5.23% and the S&P 500's gain of 3.73% in that time.

Wall Street will be looking for positivity from AMKR as it approaches its next earnings report date. This is expected to be July 27, 2020. The company is expected to report EPS of -$0.02, up 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, up 17.32% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.70 per share and revenue of $4.57 billion. These totals would mark changes of +25% and +12.81%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for AMKR. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AMKR currently has a Zacks Rank of #3 (Hold).

Investors should also note AMKR's current valuation metrics, including its Forward P/E ratio of 17.37. This valuation marks a discount compared to its industry's average Forward P/E of 21.13.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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