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Advanced Micro Devices (AMD) Rises But Trails Market: What Investors Should Know
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Advanced Micro Devices (AMD - Free Report) closed at $150.77 in the latest trading session, marking a +0.61% move from the prior day. This move lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 1%.
The chipmaker's stock has climbed by 6.47% in the past month, exceeding the Computer and Technology sector's gain of 2.48% and the S&P 500's gain of 4.03%.
The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.91, reflecting a 30% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.71 billion, up 15.71% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.36 per share and a revenue of $25.55 billion, demonstrating changes of +26.79% and +12.66%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.29% higher. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 44.63. This indicates a premium in contrast to its industry's Forward P/E of 29.19.
We can also see that AMD currently has a PEG ratio of 1.56. 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 Electronics - Semiconductors was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 142, placing it within the bottom 44% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Advanced Micro Devices (AMD) Rises But Trails Market: What Investors Should Know
Advanced Micro Devices (AMD - Free Report) closed at $150.77 in the latest trading session, marking a +0.61% move from the prior day. This move lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 1%.
The chipmaker's stock has climbed by 6.47% in the past month, exceeding the Computer and Technology sector's gain of 2.48% and the S&P 500's gain of 4.03%.
The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.91, reflecting a 30% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.71 billion, up 15.71% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.36 per share and a revenue of $25.55 billion, demonstrating changes of +26.79% and +12.66%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.29% higher. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 44.63. This indicates a premium in contrast to its industry's Forward P/E of 29.19.
We can also see that AMD currently has a PEG ratio of 1.56. 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 Electronics - Semiconductors was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 142, placing it within the bottom 44% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.