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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 $13.20, moving +0.76% from the previous trading session. This change outpaced the S&P 500's 0.03% gain on the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the chip packaging and test services provider had lost 1.95% over the past month. This has lagged the Computer and Technology sector's gain of 6.3% and the S&P 500's gain of 3.23% 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 February 10, 2020. The company is expected to report EPS of $0.22, up 83.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.09 billion, up 1.26% from the year-ago period.

It is also important to note the recent changes to analyst estimates for AMKR. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AMKR currently has a Zacks Rank of #2 (Buy).

Investors should also note AMKR's current valuation metrics, including its Forward P/E ratio of 16.38. This represents a discount compared to its industry's average Forward P/E of 22.91.

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 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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