Yahoo Finance Advanced Micro Devices (AMD) Declines More Than Market: Some Information for Investors
The latest trading session saw Advanced Micro Devices (AMD) ending at $148.29, denoting a -1.68% adjustment from its last day's close. This change lagged the S&P 500's 0.29% loss on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.31%.
The the stock of chipmaker has fallen by 3.57% in the past month, lagging the Computer and Technology sector's loss of 1.17% and the S&P 500's gain of 1.57%.
Investors will be eagerly watching for the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company is expected to report EPS of $0.91, up 30% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $6.71 billion, showing a 15.71% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.36 per share and a revenue of $25.55 billion, demonstrating changes of +26.79% and +12.66%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 44.92. Its industry sports an average Forward P/E of 27.78, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
We can additionally observe that AMD currently boasts a PEG ratio of 1.57. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Semiconductors industry had an average PEG ratio of 2.05 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.
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
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
