In the latest trading session, Super Micro Computer (SMCI) closed at $23.83, marking a -1.45% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a loss of 0.59%, and the technology-centric Nasdaq decreased by 0.05%.
Prior to today's trading, shares of the server technology company had lost 21.14% lagged the Computer and Technology sector's loss of 4.32% and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Super Micro Computer in its forthcoming earnings report. The company's upcoming EPS is projected at $0.7, signifying a 70.73% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $11.71 billion, up 103.47% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.59 per share and a revenue of $39.67 billion, representing changes of +25.73% and +80.55%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Super Micro Computer. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Super Micro Computer presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Super Micro Computer is currently exchanging hands at a Forward P/E ratio of 7.53. This denotes a discount relative to the industry average Forward P/E of 15.
It is also worth noting that SMCI currently has a PEG ratio of 0.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer- Storage Devices industry was having an average PEG ratio of 1.51.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 25, finds itself in the top 11% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).