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Advanced Micro Devices (AMD) Outpaces Stock Market Gains: What You Should Know
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Advanced Micro Devices (AMD - Free Report) closed at $94.70 in the latest trading session, marking a +1.49% move from the prior day. This move outpaced the S&P 500's daily gain of 0.75%.
Heading into today, shares of the chipmaker had gained 16.08% over the past month, outpacing the Computer and Technology sector's gain of 7.17% and the S&P 500's gain of 3.52% in that time.
AMD will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMD to post earnings of $0.54 per share. This would mark year-over-year growth of 200%. Our most recent consensus estimate is calling for quarterly revenue of $3.61 billion, up 86.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.16 per share and revenue of $14.69 billion. These totals would mark changes of +67.44% and +50.46%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AMD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. AMD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AMD currently has a Forward P/E ratio of 43.81. This valuation marks a premium compared to its industry's average Forward P/E of 18.43.
Also, we should mention that AMD has a PEG ratio of 1.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 AMD in the coming trading sessions, be sure to utilize Zacks.com.
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Advanced Micro Devices (AMD) Outpaces Stock Market Gains: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed at $94.70 in the latest trading session, marking a +1.49% move from the prior day. This move outpaced the S&P 500's daily gain of 0.75%.
Heading into today, shares of the chipmaker had gained 16.08% over the past month, outpacing the Computer and Technology sector's gain of 7.17% and the S&P 500's gain of 3.52% in that time.
AMD will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMD to post earnings of $0.54 per share. This would mark year-over-year growth of 200%. Our most recent consensus estimate is calling for quarterly revenue of $3.61 billion, up 86.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.16 per share and revenue of $14.69 billion. These totals would mark changes of +67.44% and +50.46%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AMD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. AMD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AMD currently has a Forward P/E ratio of 43.81. This valuation marks a premium compared to its industry's average Forward P/E of 18.43.
Also, we should mention that AMD has a PEG ratio of 1.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 AMD in the coming trading sessions, be sure to utilize Zacks.com.