Advanced Micro Devices (AMD) closed the most recent trading day at $507.29, moving -7.3% from the previous trading session. This move lagged the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 1.15%.
The stock of chipmaker has risen by 29.99% in the past month, leading the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of Advanced Micro Devices in its upcoming earnings disclosure. On that day, Advanced Micro Devices is projected to report earnings of $1.6 per share, which would represent year-over-year growth of 233.33%. At the same time, our most recent consensus estimate is projecting a revenue of $11.27 billion, reflecting a 46.67% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.21 per share and a revenue of $48.72 billion, demonstrating changes of +72.9% and +40.65%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% upward. Advanced Micro Devices currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 75.86 right now. This denotes a premium relative to the industry average Forward P/E of 27.36.
Investors should also note that AMD has a PEG ratio of 1.38 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems was holding an average PEG ratio of 1 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 14, placing it within the top 6% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
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