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Amkor Technology (AMKR) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Amkor Technology (AMKR - Free Report) reached $30.08, with a -1.38% movement compared to the previous day. This change lagged the S&P 500's 0.96% loss on the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.

The chip packaging and test services provider's stock has climbed by 6.98% in the past month, falling short of the Computer and Technology sector's gain of 7.35% and outpacing the S&P 500's gain of 4.3%.

The investment community will be closely monitoring the performance of Amkor Technology in its forthcoming earnings report. The company is expected to report EPS of $0.50, down 7.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.83 billion, up 0.62% from the prior-year quarter.

AMKR's full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $6.51 billion. These results would represent year-over-year changes of +6.16% and +0.15%, respectively.

It is also important to note the recent changes to analyst estimates for Amkor Technology. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.72% upward. Right now, Amkor Technology possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Amkor Technology is currently trading at a Forward P/E ratio of 19.73. For comparison, its industry has an average Forward P/E of 33.36, which means Amkor Technology is trading at a discount to the group.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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