Advanced Micro Devices (AMD) closed the most recent trading day at $79.06, moving +1.2% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.06%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq gained 0.76%.
Coming into today, shares of the chipmaker had lost 11.87% in the past month. In that same time, the Computer and Technology sector lost 6.54%, while the S&P 500 gained 0.17%.
AMD will be looking to display strength as it nears its next earnings release. On that day, AMD is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 144.44%. Our most recent consensus estimate is calling for quarterly revenue of $3.21 billion, up 79.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.93 per share and revenue of $13.47 billion. These totals would mark changes of +49.61% and +37.96%, respectively, from last year.
Any recent changes to analyst estimates for AMD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AMD is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AMD is holding a Forward P/E ratio of 40.48. Its industry sports an average Forward P/E of 20.65, so we one might conclude that AMD is trading at a premium comparatively.
We can also see that AMD currently has a PEG ratio of 1.28. 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 Electronics - Semiconductors industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.
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March 20, 2021 at 04:45AM
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