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Super Micro Computer (SMCI) Gains As Market Dips: What You Should Know

Super Micro Computer (SMCI) closed the most recent trading day at $55.07, moving +1.14% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.51%. Elsewhere, the Dow lost 1.71%, while the tech-heavy Nasdaq lost 0.02%.

Prior to today's trading, shares of the server technology company had lost 13.98% over the past month. This has lagged the Computer and Technology sector's loss of 11.76% and the S&P 500's loss of 9.52% in that time.

Investors will be hoping for strength from Super Micro Computer as it approaches its next earnings release. On that day, Super Micro Computer is projected to report earnings of $2.20 per share, which would represent year-over-year growth of 279.31%. Our most recent consensus estimate is calling for quarterly revenue of $1.57 billion, up 52.02% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.50 per share and revenue of $6.2 billion, which would represent changes of +32.74% and +19.32%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Super Micro Computer. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Super Micro Computer is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Super Micro Computer's current valuation metrics, including its Forward P/E ratio of 7.26. For comparison, its industry has an average Forward P/E of 14.43, which means Super Micro Computer is trading at a discount to the group.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% 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.

To follow SMCI in the coming trading sessions, be sure to utilize Zacks.com.

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