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Super Micro Computer (SMCI) Stock Slides as Market Rises: Facts to Know Before You Trade
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The most recent trading session ended with Super Micro Computer (SMCI - Free Report) standing at $895.61, reflecting a -0.41% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.07% for the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.14%.
The the stock of server technology company has risen by 14.3% in the past month, leading the Computer and Technology sector's gain of 8.61% and the S&P 500's gain of 4.34%.
Investors will be eagerly watching for the performance of Super Micro Computer in its upcoming earnings disclosure. The company is expected to report EPS of $8.08, up 130.2% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $5.3 billion, indicating a 142.58% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Super Micro Computer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Super Micro Computer is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 26.21. Its industry sports an average Forward P/E of 18.98, so one might conclude that Super Micro Computer is trading at a premium comparatively.
We can additionally observe that SMCI currently boasts a PEG ratio of 0.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer- Storage Devices industry currently had an average PEG ratio of 1.57 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Super Micro Computer (SMCI) Stock Slides as Market Rises: Facts to Know Before You Trade
The most recent trading session ended with Super Micro Computer (SMCI - Free Report) standing at $895.61, reflecting a -0.41% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.07% for the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.14%.
The the stock of server technology company has risen by 14.3% in the past month, leading the Computer and Technology sector's gain of 8.61% and the S&P 500's gain of 4.34%.
Investors will be eagerly watching for the performance of Super Micro Computer in its upcoming earnings disclosure. The company is expected to report EPS of $8.08, up 130.2% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $5.3 billion, indicating a 142.58% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Super Micro Computer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Super Micro Computer is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Super Micro Computer is currently trading at a Forward P/E ratio of 26.21. Its industry sports an average Forward P/E of 18.98, so one might conclude that Super Micro Computer is trading at a premium comparatively.
We can additionally observe that SMCI currently boasts a PEG ratio of 0.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer- Storage Devices industry currently had an average PEG ratio of 1.57 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.