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Here's Why Advanced Micro Devices (AMD) Fell More Than Broader Market
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The latest trading session saw Advanced Micro Devices (AMD - Free Report) ending at $154, denoting a -1.2% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The the stock of chipmaker has fallen by 2.73% in the past month, lagging the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is slated to reveal its earnings on July 30, 2024. The company is forecasted to report an EPS of $0.67, showcasing a 15.52% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.71 billion, indicating a 6.54% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.41 per share and a revenue of $25.26 billion, demonstrating changes of +28.68% and +11.36%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 45.76. For comparison, its industry has an average Forward P/E of 36.95, which means Advanced Micro Devices is trading at a premium to the group.
It is also worth noting that AMD currently has a PEG ratio of 1.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AMD's industry had an average PEG ratio of 2.63 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Here's Why Advanced Micro Devices (AMD) Fell More Than Broader Market
The latest trading session saw Advanced Micro Devices (AMD - Free Report) ending at $154, denoting a -1.2% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The the stock of chipmaker has fallen by 2.73% in the past month, lagging the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is slated to reveal its earnings on July 30, 2024. The company is forecasted to report an EPS of $0.67, showcasing a 15.52% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.71 billion, indicating a 6.54% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.41 per share and a revenue of $25.26 billion, demonstrating changes of +28.68% and +11.36%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 45.76. For comparison, its industry has an average Forward P/E of 36.95, which means Advanced Micro Devices is trading at a premium to the group.
It is also worth noting that AMD currently has a PEG ratio of 1.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AMD's industry had an average PEG ratio of 2.63 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.