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Advanced Micro Devices (AMD) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw Advanced Micro Devices (AMD - Free Report) ending at $170.97, denoting a +0.04% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.96%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 1.18%.

The the stock of chipmaker has risen by 27.2% in the past month, leading the Computer and Technology sector's gain of 7.35% and the S&P 500's gain of 4.3%.

Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company is expected to report EPS of $0.91, up 30% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.71 billion, indicating a 15.71% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.36 per share and revenue of $25.55 billion. These totals would mark changes of +26.79% and +12.66%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Advanced Micro Devices holds a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 50.9 right now. This represents a premium compared to its industry's average Forward P/E of 33.36.

We can additionally observe that AMD currently boasts a PEG ratio of 1.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors industry had an average PEG ratio of 2.23 as trading concluded yesterday.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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