In the latest trading session, Advanced Micro Devices (AMD) closed at $159.47, up +1.23% from the previous trading day’s closing price. The stock outperformed the S&P 500’s one-day gain of 0.09%. Elsewhere in the market, the Dow rose 0.09%, while the tech-heavy Nasdaq gained 0.3%.
Prior to today’s trading, shares of the semiconductor maker had lost 4.6% over the past month, lagging the Computer and Technology sector’s gain of 6.18% and the S&P 500’s gain of 3.38% in that time period.
Market participants will be closely watching Advanced Micro Devices’ upcoming financial results, as the company’s earnings per share (EPS) are expected to be $0.66, representing year-over-year growth of 13.79%, while our most recent consensus estimates are calling for revenue of $5.71 billion, up 6.54% from the prior-year period.
Looking at the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $25.29 billion, which would represent changes of +28.68% and +11.51%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect changing short-term business trends, therefore, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research shows that these estimate revisions are directly correlated with future stock price movements, and to capitalize on this, we have created the Zacks Rank, a proprietary model which aggregates these estimate changes and provides a functioning rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell), and it has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Advanced Micro Devices currently has a Zacks Rank #3 (Hold).
From a valuation perspective, Advanced Micro Devices is currently trading at a Forward P/E ratio of 46.19, which indicates a premium compared to its industry’s average Forward P/E ratio of 39.27.
Additionally, we can see that AMD’s current PEG ratio is 1.39. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The average PEG ratio for the Electronics – Semiconductors industry was 2.88 as of yesterday’s market close.
The Electronics – Semiconductors industry belongs to the Computer and Technology sector. This industry is currently ranked #157 in the Zacks Industry Rank, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst based on the average Zacks Rank of the individual companies within each sector, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To track AMD in the upcoming trading sessions, be sure to utilize Zacks.com.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
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