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Here's Why Super Micro Computer (SMCI) Gained But Lagged the Market Today
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Super Micro Computer (SMCI - Free Report) closed the latest trading day at $304.18, indicating a +0.7% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.03%. At the same time, the Dow added 0.87%, and the tech-heavy Nasdaq gained 1.26%.
Coming into today, shares of the server technology company had gained 5.38% in the past month. In that same time, the Computer and Technology sector gained 2.42%, while the S&P 500 gained 3.01%.
The investment community will be paying close attention to the earnings performance of Super Micro Computer in its upcoming release. The company's upcoming EPS is projected at $4.57, signifying a 40.18% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.8 billion, up 55.38% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Super Micro Computer. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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, there's been no change in the Zacks Consensus EPS estimate. Super Micro Computer presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is presently being traded at a Forward P/E ratio of 17.9. This expresses a discount compared to the average Forward P/E of 19.68 of its industry.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 195, this industry ranks in the bottom 23% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Here's Why Super Micro Computer (SMCI) Gained But Lagged the Market Today
Super Micro Computer (SMCI - Free Report) closed the latest trading day at $304.18, indicating a +0.7% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.03%. At the same time, the Dow added 0.87%, and the tech-heavy Nasdaq gained 1.26%.
Coming into today, shares of the server technology company had gained 5.38% in the past month. In that same time, the Computer and Technology sector gained 2.42%, while the S&P 500 gained 3.01%.
The investment community will be paying close attention to the earnings performance of Super Micro Computer in its upcoming release. The company's upcoming EPS is projected at $4.57, signifying a 40.18% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.8 billion, up 55.38% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Super Micro Computer. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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, there's been no change in the Zacks Consensus EPS estimate. Super Micro Computer presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is presently being traded at a Forward P/E ratio of 17.9. This expresses a discount compared to the average Forward P/E of 19.68 of its industry.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 195, this industry ranks in the bottom 23% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.