Benzinga - by Zacks, Benzinga Contributor.
In the latest market close, Advanced Micro Devices (NASDAQ: AMD) reached $160.32, with a -1.81% movement compared to the previous day. This change lagged the S&P 500's 1.2% loss on the day. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 1.79%.
Coming into today, shares of the chipmaker had lost 14.54% in the past month. In that same time, the Computer and Technology sector lost 0.51%, while the S&P 500 lost 0.85%.
Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company is expected to report EPS of $0.59, down 1.67% from the prior-year quarter. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.44 per share and a revenue of $25.2 billion, indicating changes of +29.81% and +11.1%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.29% lower. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 47.53. This expresses a premium compared to the average Forward P/E of 33.95 of its industry.
We can also see that AMD currently has a PEG ratio of 1.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors industry had an average PEG ratio of 2.9 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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