In the latest trading session, Advanced Micro Devices (AMD) closed at $81.57, a move of -0.59% from the previous day. This change lagged the S&P 500’s 0.22% gain on the day. At the same time, the Dow lost 0.13% and the tech-heavy Nasdaq gained 0.22%.
Prior to today’s trading, the chipmaker’s stock had lost 12.76% in the past month. This lagged behind the computer and technology sector’s 9.55% loss and the S&P 500’s 10.02% loss over that time.
Investors will hope for strength from Advanced Micro Devices as it nears its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $1.03 per share. This would represent a year-over-year growth of 63.49%. Meanwhile, the Zacks Consensus Estimate for Sales forecasts net sales of $6.52 billion, up 69.29% from the same period last year.
AMD’s full-year Zacks Consensus Estimates argue for earnings of $4.37 per share and revenue of $26.36 billion. These results represent year-over-year changes of +56.63% and +60.4%, respectively.
Investors may also notice recent changes in analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which may change regularly. As a result, we can interpret positive estimate revisions as a good sign for the company’s business prospects.
Our research shows that these estimate changes are directly correlated with short-term stock prices. To take advantage of this, we developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides a useful rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, audited by third parties, with #1 stocks averaging since 1988. 25% per year. The Zacks Consensus The EPS estimate is up 0.79% over the past month. Advanced Micro Devices currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Advanced Micro Devices has a Forward P/E ratio of 18.65. This valuation marks a premium to the industry’s average Forward P/E of 14.33.
Investors should also note that AMD currently has a PEG ratio of 0.57. This metric is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the expected earnings growth of the stock. AMD’s industry had an average PEG ratio of 1.63 at yesterday’s close.
The electronics semiconductor industry is part of the computer and technology sector. This group has a Zacks Industry Rank of 84, placing it in the top 34% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the sectors with the highest 50% rating outperform the bottom half by a factor of 2 to 1.
You can learn more about all these stats and much more at Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report