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Why Super Micro Computer (SMCI) Dipped More Than Broader Market Today

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Super Micro Computer (SMCI - Free Report) closed the most recent trading day at $46.47, moving -1.73% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.21% for the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Shares of the server technology company have appreciated by 6.17% over the course of the past month, underperforming the Computer and Technology sector's gain of 9.62% and outperforming the S&P 500's gain of 5.94%.

Investors will be eagerly watching for the performance of Super Micro Computer in its upcoming earnings disclosure. The company is expected to report EPS of $0.75, up 120.59% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $6.52 billion, indicating a 207.52% upward movement from the same quarter last year.

SMCI's full-year Zacks Consensus Estimates are calling for earnings of $3.35 per share and revenue of $28.01 billion. These results would represent year-over-year changes of +51.58% and +87.45%, respectively.

Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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.

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 witnessed an unchanged state. Currently, Super Micro Computer is carrying a Zacks Rank of #2 (Buy).

From a valuation perspective, Super Micro Computer is currently exchanging hands at a Forward P/E ratio of 14.12. This expresses no noticeable deviation compared to the average Forward P/E of 14.12 of its industry.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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