In the latest trading session, Super Micro Computer (SMCI) closed at $47.58, marking a -3.43% move from the previous day. This change lagged the S&P 500's 0.52% gain on the day. On the other hand, the Dow registered a gain of 1%, and the technology-centric Nasdaq increased by 0.52%.
Heading into today, shares of the server technology company had gained 19.73% over the past month, outpacing the Computer and Technology sector's gain of 9.55% and the S&P 500's gain of 5.95%.
The investment community will be paying close attention to the earnings performance of Super Micro Computer in its upcoming release. It is anticipated that the company will report an EPS of $0.44, marking a 30.16% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.92 billion, indicating a 11.62% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.07 per share and revenue of $22.14 billion, which would represent changes of -6.33% and +48.16%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Super Micro Computer. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Super Micro Computer is currently sporting a Zacks Rank of #4 (Sell).
With respect to valuation, Super Micro Computer is currently being traded at a Forward P/E ratio of 23.77. This expresses a premium compared to the average Forward P/E of 13.56 of its industry.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% 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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