Yahoo Finance Advanced Micro Devices (AMD) Outpaces Stock Market Gains: What You Should Know
The most recent trading session ended with Advanced Micro Devices (AMD) standing at $159.47, reflecting a +1.23% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.3%.
Prior to today's trading, shares of the chipmaker had lost 4.6% over the past month. This has lagged the Computer and Technology sector's gain of 6.18% and the S&P 500's gain of 3.38% in that time.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 13.79% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $5.71 billion, indicating a 6.54% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.41 per share and a revenue of $25.29 billion, representing changes of +28.68% and +11.51%, respectively, from the prior year.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 46.19. This denotes a premium relative to the industry's average Forward P/E of 39.27.
We can additionally observe that AMD currently boasts a PEG ratio of 1.39. The PEG ratio bears resemblance to the frequently 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 stood at 2.88 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 38% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
