Super Micro Computer (SMCI) closed at $45.32 in the latest trading session, marking a +1.91% move from the prior day. This change outpaced the S&P 500's 0.22% loss on the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.51%.
Shares of the server technology company witnessed a gain of 7.62% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.98%, and the S&P 500's gain of 0.45%.
Analysts and investors alike will be keeping a close eye on the performance of Super Micro Computer in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.44, showcasing a 30.16% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, up 11.28% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Super Micro Computer is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Super Micro Computer is at present trading with a Forward P/E ratio of 21.46. This denotes a premium relative to the industry average Forward P/E of 13.32.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 17% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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