Yahoo Finance Here's Why Advanced Micro Devices (AMD) Gained But Lagged the Market Today
The most recent trading session ended with Advanced Micro Devices (AMD) standing at $147.18, reflecting a +0.37% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.87%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 1.11%.
The the stock of chipmaker has fallen by 18.38% in the past month, lagging the Computer and Technology sector's loss of 5.98% and the S&P 500's loss of 3.97%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company plans to announce its earnings on April 30, 2024. The company is predicted to post an EPS of $0.59, indicating a 1.67% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.42 billion, up 1.24% from the prior-year quarter.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.44 per share and revenue of $25.2 billion. These results would represent year-over-year changes of +29.81% and +11.1%, respectively.
Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.09% lower. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 42.63 right now. This represents a premium compared to its industry's average Forward P/E of 30.77.
Meanwhile, AMD's PEG ratio is currently 1.71. 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 Electronics - Semiconductors industry had an average PEG ratio of 2.78 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
