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Super Micro Computer (SMCI) Flat As Market Gains: What You Should Know

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Super Micro Computer (SMCI - Free Report) closed the most recent trading day at $235.93, making no change from the previous trading session. This change lagged the S&P 500's 0.45% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.99%.

Coming into today, shares of the server technology company had gained 5.35% in the past month. In that same time, the Computer and Technology sector gained 3.21%, while the S&P 500 gained 4.25%.

Wall Street will be looking for positivity from Super Micro Computer as it approaches its next earnings report date. On that day, Super Micro Computer is projected to report earnings of $2.46 per share, which would represent a year-over-year decline of 6.11%. Our most recent consensus estimate is calling for quarterly revenue of $1.8 billion, up 10.06% from the year-ago period.

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.

Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Super Micro Computer currently has a Zacks Rank of #3 (Hold).

Investors should also note Super Micro Computer's current valuation metrics, including its Forward P/E ratio of 21.93. Its industry sports an average Forward P/E of 25.82, so we one might conclude that Super Micro Computer is trading at a discount comparatively.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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