Advanced Micro Devices (AMD) closed at $81.97 in the latest trading session, marking a +1.44% move from the prior day. This change outpaced the S&P 500's 0.15% gain on the day.
Coming into today, shares of the chipmaker had gained 2.8% in the past month. In that same time, the Computer and Technology sector lost 0.49%, while the S&P 500 gained 0.58%.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. The company is expected to report EPS of $0.54, up 200% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.61 billion, up 86.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.16 per share and revenue of $14.69 billion, which would represent changes of +67.44% and +50.46%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AMD. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.84% higher within the past month. AMD is currently a Zacks Rank #2 (Buy).
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 37.38. For comparison, its industry has an average Forward P/E of 17.65, which means AMD is trading at a premium to the group.
Meanwhile, AMD's PEG ratio is currently 1.07. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 1.54 at yesterday's closing price.
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 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.
To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.
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June 03, 2021 at 04:45AM
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Advanced Micro Devices (AMD) Outpaces Stock Market Gains: What You Should Know - Yahoo Finance
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