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

Zacks Equity Research

Amkor Technology (AMKR) closed the most recent trading day at $12.02, moving +1.39% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.01%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 1.43%.

Prior to today's trading, shares of the chip packaging and test services provider had lost 10.7% over the past month. This has lagged the Computer and Technology sector's gain of 2.89% and the S&P 500's gain of 0.19% in that time.

Investors will be hoping for strength from AMKR as it approaches its next earnings release, which is expected to be February 10, 2020. In that report, analysts expect AMKR to post earnings of $0.22 per share. This would mark year-over-year growth of 83.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.09 billion, up 1.26% from the year-ago period.

Investors should also note any recent changes to analyst estimates for AMKR. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMKR is currently a Zacks Rank #2 (Buy).

Investors should also note AMKR's current valuation metrics, including its Forward P/E ratio of 14.81. Its industry sports an average Forward P/E of 22.39, so we one might conclude that AMKR is trading at a discount comparatively.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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