Super Micro Computer (SMCI) closed at $25.97 in the latest trading session, marking a +2.81% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 1.23%.
The server technology company's shares have seen a decrease of 17.85% over the last month, not keeping up with the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 0.63%.
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 $0.63, marking a 103.23% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $12.35 billion, up 168.5% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.23 per share and a revenue of $41.25 billion, signifying shifts of +8.25% and +87.72%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 shifted 1.33% upward. Super Micro Computer currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 11.34. This valuation marks a discount compared to its industry average Forward P/E of 12.05.
Investors should also note that SMCI has a PEG ratio of 0.4 right now. 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. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 22% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).