In the latest trading session, Super Micro Computer (SMCI) closed at $31.51, marking a -1.21% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.13%. Elsewhere, the Dow lost 1.33%, while the tech-heavy Nasdaq lost 0.13%.
The server technology company's stock has dropped by 20.47% in the past month, falling short of the Computer and Technology sector's loss of 9.27% and the S&P 500's loss of 6.3%.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 22.39% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $5.34 billion, indicating a 38.58% upward movement from the same quarter last year.
SMCI's full-year Zacks Consensus Estimates are calling for earnings of $2.55 per share and revenue of $23.79 billion. These results would represent year-over-year changes of +15.38% and +59.19%, respectively.
Investors should also note any recent changes to analyst estimates for Super Micro Computer. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Super Micro Computer is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Super Micro Computer is holding a Forward P/E ratio of 12.53. This valuation marks a premium compared to its industry's average Forward P/E of 11.26.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 31, placing it within the top 13% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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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