Advanced Micro Devices (AMD) ended the recent trading session at $128.24, demonstrating a +1.14% change from the preceding day's closing price. This change outpaced the S&P 500's 0.22% loss on the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%.
Coming into today, shares of the chipmaker had gained 14.52% in the past month. In that same time, the Computer and Technology sector gained 2.98%, while the S&P 500 gained 0.45%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. In that report, analysts expect Advanced Micro Devices to post earnings of $0.54 per share. This would mark a year-over-year decline of 21.74%. Meanwhile, our latest consensus estimate is calling for revenue of $7.41 billion, up 27% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.92 per share and a revenue of $31.75 billion, demonstrating changes of +18.43% and +23.15%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.68% lower within the past month. At present, Advanced Micro Devices boasts a Zacks Rank of #3 (Hold).
Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 32.37. This denotes a premium relative to the industry average Forward P/E of 19.27.
Investors should also note that AMD has a PEG ratio of 1.32 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 1.81.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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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