We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Super Micro Computer (SMCI) Stock Falls Amid Market Uptick: What Investors Need to Know
Read MoreHide Full Article
Super Micro Computer (SMCI - Free Report) ended the recent trading session at $786.28, demonstrating a -1.32% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.58%.
The server technology company's stock has dropped by 11.98% in the past month, falling short of the Computer and Technology sector's loss of 4.77% and the S&P 500's gain of 0.43%.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. In that report, analysts expect Super Micro Computer to post earnings of $8.08 per share. This would mark year-over-year growth of 130.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.3 billion, up 142.58% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Super Micro Computer is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 23.22. Its industry sports an average Forward P/E of 18.41, so one might conclude that Super Micro Computer is trading at a premium comparatively.
One should further note that SMCI currently holds a PEG ratio of 0.44. 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. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Super Micro Computer (SMCI) Stock Falls Amid Market Uptick: What Investors Need to Know
Super Micro Computer (SMCI - Free Report) ended the recent trading session at $786.28, demonstrating a -1.32% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.58%.
The server technology company's stock has dropped by 11.98% in the past month, falling short of the Computer and Technology sector's loss of 4.77% and the S&P 500's gain of 0.43%.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. In that report, analysts expect Super Micro Computer to post earnings of $8.08 per share. This would mark year-over-year growth of 130.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.3 billion, up 142.58% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Super Micro Computer is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 23.22. Its industry sports an average Forward P/E of 18.41, so one might conclude that Super Micro Computer is trading at a premium comparatively.
One should further note that SMCI currently holds a PEG ratio of 0.44. 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. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.