Advanced Micro Devices (AMD) closed the most recent trading day at $177.44, moving +2.18% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow experienced a drop of 0.46%, and the technology-dominated Nasdaq saw a decrease of 0.38%.
Coming into today, shares of the chipmaker had gained 22.38% in the past month. In that same time, the Computer and Technology sector gained 4.85%, while the S&P 500 gained 3.64%.
The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. The company is scheduled to release its earnings on August 5, 2025. It is anticipated that the company will report an EPS of $0.47, marking a 31.88% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.41 billion, up 26.96% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.85 per share and revenue of $31.85 billion. These results would represent year-over-year changes of +16.31% and +23.53%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.96% upward. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 45.1. This signifies a premium in comparison to the average Forward P/E of 20.25 for its industry.
Meanwhile, AMD's PEG ratio is currently 1.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 2.98.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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