Super Micro Computer (SMCI) ended the recent trading session at $41.56, demonstrating a -4.15% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.
The server technology company's shares have seen a decrease of 1.36% over the last month, not keeping up with the Computer and Technology sector's gain of 7.36% and the S&P 500's gain of 3.55%.
The upcoming earnings release of Super Micro Computer will be of great interest to investors. The company's upcoming EPS is projected at $0.44, signifying a 30.16% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.91 billion, up 11.28% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.07 per share and a revenue of $22.12 billion, indicating changes of -6.33% and +48.04%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Super Micro Computer holds a Zacks Rank of #4 (Sell).
Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 20.92. This denotes a premium relative to the industry average Forward P/E of 13.34.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 181, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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