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Advanced Micro Devices (AMD) Gains But Lags Market: What You Should Know
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Advanced Micro Devices (AMD - Free Report) closed at $122.28 in the latest trading session, marking a +0.68% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.88%. At the same time, the Dow added 1.24%, and the tech-heavy Nasdaq gained 0.65%.
The the stock of chipmaker has fallen by 2.52% in the past month, lagging the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is slated to reveal its earnings on February 4, 2025. The company's upcoming EPS is projected at $1.07, signifying a 38.96% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.52 billion, up 21.84% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 24.88. This valuation marks a premium compared to its industry's average Forward P/E of 18.3.
It is also worth noting that AMD currently has a PEG ratio of 0.91. 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 average PEG ratio for the Computer - Integrated Systems industry stood at 1.89 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 40% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Advanced Micro Devices (AMD) Gains But Lags Market: What You Should Know
Advanced Micro Devices (AMD - Free Report) closed at $122.28 in the latest trading session, marking a +0.68% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.88%. At the same time, the Dow added 1.24%, and the tech-heavy Nasdaq gained 0.65%.
The the stock of chipmaker has fallen by 2.52% in the past month, lagging the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is slated to reveal its earnings on February 4, 2025. The company's upcoming EPS is projected at $1.07, signifying a 38.96% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.52 billion, up 21.84% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 24.88. This valuation marks a premium compared to its industry's average Forward P/E of 18.3.
It is also worth noting that AMD currently has a PEG ratio of 0.91. 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 average PEG ratio for the Computer - Integrated Systems industry stood at 1.89 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 40% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.