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Advanced Micro Devices (AMD) Stock Sinks As Market Gains: What You Should Know
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Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $96.56, moving -1.48% from the previous trading session. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Heading into today, shares of the chipmaker had gained 20.23% over the past month, outpacing the Computer and Technology sector's gain of 10.71% and the S&P 500's gain of 3.71% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $0.67 per share. This would mark a year-over-year decline of 40.71%. Our most recent consensus estimate is calling for quarterly revenue of $5.3 billion, down 9.89% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $23.52 billion. These totals would mark changes of -14% and -0.35%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Advanced Micro Devices is currently a Zacks Rank #4 (Sell).
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 32.59. Its industry sports an average Forward P/E of 20.2, so we one might conclude that Advanced Micro Devices is trading at a premium comparatively.
Meanwhile, AMD's PEG ratio is currently 4.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 3.41 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Advanced Micro Devices (AMD) Stock Sinks As Market Gains: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $96.56, moving -1.48% from the previous trading session. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Heading into today, shares of the chipmaker had gained 20.23% over the past month, outpacing the Computer and Technology sector's gain of 10.71% and the S&P 500's gain of 3.71% in that time.
Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $0.67 per share. This would mark a year-over-year decline of 40.71%. Our most recent consensus estimate is calling for quarterly revenue of $5.3 billion, down 9.89% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $23.52 billion. These totals would mark changes of -14% and -0.35%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Advanced Micro Devices is currently a Zacks Rank #4 (Sell).
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 32.59. Its industry sports an average Forward P/E of 20.2, so we one might conclude that Advanced Micro Devices is trading at a premium comparatively.
Meanwhile, AMD's PEG ratio is currently 4.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 3.41 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.