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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 $317.36 in the latest trading session, marking a -1.24% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Coming into today, shares of the server technology company had gained 42.08% in the past month. In that same time, the Computer and Technology sector gained 3.63%, while the S&P 500 gained 5.14%.

Investors will be hoping for strength from Super Micro Computer as it approaches its next earnings release, which is expected to be August 8, 2023. The company is expected to report EPS of $2.94, up 12.21% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.98 billion, up 21.22% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Super Micro Computer. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 10.27% higher. Super Micro Computer is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Super Micro Computer has a Forward P/E ratio of 31.75 right now. Its industry sports an average Forward P/E of 28.54, so we one might conclude that Super Micro Computer is trading at a premium comparatively.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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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