Super Micro Computer (SMCI) ended the recent trading session at $27.66, demonstrating a -2.3% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.79% for the day. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 1.55%.
The server technology company's shares have seen a decrease of 7.06% over the last month, not keeping up with the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
The upcoming earnings release of Super Micro Computer will be of great interest to investors. The company is expected to report EPS of $0.7, up 70.73% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $11.71 billion, indicating a 103.47% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.59 per share and a revenue of $39.67 billion, demonstrating changes of +25.73% and +80.55%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 2.35% higher within the past month. Super Micro Computer is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Super Micro Computer currently has a Forward P/E ratio of 8.82. For comparison, its industry has an average Forward P/E of 15.88, which means Super Micro Computer is trading at a discount to the group.
It is also worth noting that SMCI currently has a PEG ratio of 0.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer- Storage Devices industry had an average PEG ratio of 1.67 as trading concluded yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 6, this industry ranks in the top 3% 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.
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 Report
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