Super Micro Computer (SMCI) ended the recent trading session at $51.84, demonstrating a -1.73% change from the preceding day's closing price. This change lagged the S&P 500's 0.01% loss on the day. Elsewhere, the Dow saw a downswing of 0.32%, while the tech-heavy Nasdaq appreciated by 0.05%.
Shares of the server technology company witnessed a gain of 18.62% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.44%, and the S&P 500's gain of 5.37%.
The investment community will be closely monitoring the performance of Super Micro Computer in its forthcoming earnings report. The company is predicted to post an EPS of $0.44, indicating a 30.16% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.92 billion, up 11.62% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.07 per share and revenue of $22.14 billion. These totals would mark changes of -6.33% and 0%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Super Micro Computer. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 has moved 7.63% lower. As of now, Super Micro Computer holds a Zacks Rank of #4 (Sell).
With respect to valuation, Super Micro Computer is currently being traded at a Forward P/E ratio of 20.16. This indicates a premium in contrast to its industry's Forward P/E of 13.88.
Also, we should mention that SMCI has a PEG ratio of 2.01. 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 Computer- Storage Devices industry currently had an average PEG ratio of 2 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 11, this industry ranks in the top 5% 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.
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Super Micro Computer, Inc. (SMCI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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