In the most recent trading session, Advanced Micro Devices (AMD) closed at $ 90.62, a move of -1.07% from the previous day. This change led to the S&P 500’s daily loss of 0.22%. Meanwhile, the Dow lost 0.23% and the Nasdaq, a technology index, lost 0.38%.
Today, the chipmaker’s shares lost 1.14% in the past month. At the same time, the computer and technology sector rose by 5.2%, while the S&P 500 rose by 2.78%.
AMD will want to show strength as its next earnings release. AMD is expected to earn $ 0.46 per share on that day, which would represent a year-over-year growth of 43.75%. Our most recent consensus estimate calls for a quarterly revenue of $ 3 billion, an increase of 41.27% compared to the previous year.
AMD’s full-year Zacks consensus estimates call for earnings of $ 1.23 per share and revenue of $ 9.52 billion. These results would represent year-on-year changes of + 92.19% and + 41.49%, respectively.
Investors should also take note of recent changes to estimates for analysts for AMD. These reviews help to highlight the ever-changing nature of short-term business trends. As such, the positive estimate reflects the optimistic analysis of the business about the business and profitability.
Research suggests that this estimate of the review is directly correlated with the momentum of the stock price in the short term. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes these estimation changes into account and delivers a clear, workable rating model.
The Zacks Rank system ranges from # 1 (Strong Buy) to # 5 (Strong Sell) and has a proven, unaudited record of better performance, with # 1 stocks averaging + 25% annually since 1988 has. Our consensus EPS projection stood still for 30 days. AMD is currently a Zacks Rank # 3 (Hold).
In terms of valuation, AMD is currently trading at a forward P / E ratio of 74.62. Its industry has an average forward p / e of 29.75, so we can conclude that AMD is trading relatively at a premium.
It is also noteworthy that AMD currently has a PEG ratio of 1.51. This popular measure is similar to the well-known P / E ratio, with the difference that the PEG ratio also takes into account the expected growth rate of the company. The electronics semiconductors maintained an average PEG ratio of 1.51 at yesterday’s closing price.
The electronics – semiconductor industry is part of the computer and technology sector. This group has a Zacks industry rank of 103, which achieves the best 41% of all 250+ industries.
The Zacks industry rankings are listed in order from the best to the worst in terms of the average Zacks rank of the individual companies within each of these sectors. Our research shows that the top 50% of industries are better than the bottom half by a factor of 2 to 1.
Use Zacks.com to follow AMD in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report
Advanced Micro Devices, Inc. (AMD): Free Inventory Analysis Report
To read this article on Zacks.com, click here.