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Why the Market Dipped But Super Micro Computer (SMCI) Gained Today
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Super Micro Computer (SMCI - Free Report) closed at $300.11 in the latest trading session, marking a +1.94% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.36%.
Heading into today, shares of the server technology company had gained 3.78% over the past month, lagging the Computer and Technology sector's gain of 3.87% and the S&P 500's gain of 5.21% in that time.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. It is anticipated that the company will report an EPS of $4.57, marking a 40.18% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.8 billion, indicating a 55.38% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.88 per share and revenue of $10.5 billion. These totals would mark changes of +42.93% and +47.4%, respectively, from last year.
Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Super Micro Computer possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 17.44. This expresses a discount compared to the average Forward P/E of 19.23 of its industry.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why the Market Dipped But Super Micro Computer (SMCI) Gained Today
Super Micro Computer (SMCI - Free Report) closed at $300.11 in the latest trading session, marking a +1.94% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.36%.
Heading into today, shares of the server technology company had gained 3.78% over the past month, lagging the Computer and Technology sector's gain of 3.87% and the S&P 500's gain of 5.21% in that time.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. It is anticipated that the company will report an EPS of $4.57, marking a 40.18% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.8 billion, indicating a 55.38% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.88 per share and revenue of $10.5 billion. These totals would mark changes of +42.93% and +47.4%, respectively, from last year.
Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Super Micro Computer possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 17.44. This expresses a discount compared to the average Forward P/E of 19.23 of its industry.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.