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Super Micro Computer (SMCI) Dips More Than Broader Markets: What You Should Know
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Super Micro Computer (SMCI - Free Report) closed at $108.03 in the latest trading session, marking a -1.31% move from the prior day. This change lagged the S&P 500's 0.25% loss on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq lost 1.88%.
Coming into today, shares of the server technology company had gained 11.12% in the past month. In that same time, the Computer and Technology sector gained 6.89%, while the S&P 500 gained 1.48%.
Investors will be hoping for strength from Super Micro Computer as it approaches its next earnings release. In that report, analysts expect Super Micro Computer to post earnings of $2.02 per share. This would mark year-over-year growth of 30.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.47 billion, up 8.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.68 per share and revenue of $6.77 billion, which would represent changes of +89.03% and +30.35%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 remained stagnant. Super Micro Computer currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 10.25. For comparison, its industry has an average Forward P/E of 19.66, 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 164, which puts it in the bottom 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Super Micro Computer (SMCI) Dips More Than Broader Markets: What You Should Know
Super Micro Computer (SMCI - Free Report) closed at $108.03 in the latest trading session, marking a -1.31% move from the prior day. This change lagged the S&P 500's 0.25% loss on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq lost 1.88%.
Coming into today, shares of the server technology company had gained 11.12% in the past month. In that same time, the Computer and Technology sector gained 6.89%, while the S&P 500 gained 1.48%.
Investors will be hoping for strength from Super Micro Computer as it approaches its next earnings release. In that report, analysts expect Super Micro Computer to post earnings of $2.02 per share. This would mark year-over-year growth of 30.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.47 billion, up 8.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.68 per share and revenue of $6.77 billion, which would represent changes of +89.03% and +30.35%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 remained stagnant. Super Micro Computer currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 10.25. For comparison, its industry has an average Forward P/E of 19.66, 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 164, which puts it in the bottom 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.