In the latest close session, Advanced Micro Devices (AMD) was down 2.26% at $134.80. The stock's change was less than the S&P 500's daily loss of 0.79%. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq lost 0.92%.
Shares of the chipmaker witnessed a gain of 18.69% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.88%, and the S&P 500's gain of 5.22%.
Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.54, signifying a 21.74% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.41 billion, indicating a 26.96% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.92 per share and revenue of $31.76 billion, which would represent changes of +18.43% and +23.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.57% lower. Right now, Advanced Micro Devices possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Advanced Micro Devices is currently being traded at a Forward P/E ratio of 35.18. This represents a premium compared to its industry average Forward P/E of 19.4.
We can also see that AMD currently has a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computer - Integrated Systems industry stood at 4.35 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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