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Super Micro Computer (SMCI) Outpaces Stock Market Gains: What You Should Know

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Super Micro Computer (SMCI - Free Report) closed the most recent trading day at $247.77, moving +1.45% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.61%.

Heading into today, shares of the server technology company had gained 67.47% over the past month, outpacing the Computer and Technology sector's gain of 11.52% and the S&P 500's gain of 6.1% in that time.

Wall Street will be looking for positivity from Super Micro Computer as it approaches its next earnings report date. The company is expected to report EPS of $2.46, down 6.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 billion, up 10.06% from the prior-year quarter.

SMCI's full-year Zacks Consensus Estimates are calling for earnings of $10.76 per share and revenue of $6.74 billion. These results would represent year-over-year changes of +90.44% and +29.69%, respectively.

Investors should also note any recent changes to analyst estimates for Super Micro Computer. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Super Micro Computer is currently a Zacks Rank #3 (Hold).

Digging into valuation, Super Micro Computer currently has a Forward P/E ratio of 22.7. This represents a discount compared to its industry's average Forward P/E of 25.89.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 47% 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.

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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