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Super Micro Computer (SMCI) Stock Drops Despite Market Gains: Important Facts to Note

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Super Micro Computer (SMCI - Free Report) closed the most recent trading day at $416.56, moving -0.76% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.38%.

The the stock of server technology company has fallen by 4.1% in the past month, lagging the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06%.

Investors will be eagerly watching for the performance of Super Micro Computer in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $7.45, reflecting a 117.2% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.52 billion, showing a 207.52% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $33.50 per share and a revenue of $28.01 billion, signifying shifts of +51.65% and +87.45%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Super Micro Computer. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 witnessed an unchanged state. Super Micro Computer is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Super Micro Computer's current valuation metrics, including its Forward P/E ratio of 12.53. Its industry sports an average Forward P/E of 13.56, so one might conclude that Super Micro Computer is trading at a discount comparatively.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 40% echelons of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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