In the latest close session, Advanced Micro Devices (AMD) was down 1.33% at $141.90. The stock's performance was behind the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.48%.
Heading into today, shares of the chipmaker had gained 29.87% over the past month, outpacing the Computer and Technology sector's gain of 7.56% and the S&P 500's gain of 4.27%.
The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. The company is forecasted to report an EPS of $0.54, showcasing a 21.74% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.41 billion, indicating a 26.96% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.92 per share and a revenue of $31.76 billion, indicating changes of +18.43% and +23.19%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, there's been a 1.57% fall in the Zacks Consensus EPS estimate. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 36.69. This valuation marks a premium compared to its industry average Forward P/E of 19.99.
It is also worth noting that AMD currently has a PEG ratio of 1.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Integrated Systems industry stood at 4.15 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 54, positioning it in the top 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
