Here's Why Advanced Micro Devices (AMD) Fell More Than Broader Market
The latest trading session saw Advanced Micro Devices (AMD) ending at $178.63, denoting a -0.57% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.31% for the day. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq lost 0.27%.
Shares of the chipmaker have appreciated by 1.77% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.86% and the S&P 500's gain of 3.05%.
The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.60, marking stability compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.42 billion, reflecting a 1.24% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.46 per share and revenue of $25.32 billion, indicating changes of +30.57% and +11.65%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Advanced Micro Devices boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Advanced Micro Devices is presently being traded at a Forward P/E ratio of 51.9. This valuation marks a premium compared to its industry's average Forward P/E of 33.21.
Meanwhile, AMD's PEG ratio is currently 2.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 3.36 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 184, positioning it in the bottom 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
