AAdvanced Micro Devices (AMD) closed the most recent trading day at $ 109.99, or -0.66% from the previous trading session. This change is lower than the S&P 500’s daily gain of 0.03%.
Prior to today’s session, shares of the chipmaker had lost 1.63% in the past month. This was less than the 4.78% gain of the IT and tech sector and the 3.02% gain of the S&P 500 during this period.
AMD will look to show its strength as the next release of its results approaches. The company is expected to post EPS of $ 0.66, up 60.98% from the previous year quarter. Meanwhile, our latest consensus estimate projects revenue of $ 4.12 billion, up 47.06% from the previous year’s quarter.
AMD’s Zacks consensus estimates project earnings of $ 2.50 per share and revenue of $ 15.66 billion. These results would represent year-over-year variations of + 93.8% and + 60.43%, respectively.
It’s 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. Thus, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.
Our research shows that these changes in estimate are directly correlated with short-term stock prices. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.
Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks ranking system has a proven and externally audited track record of outperformance, with # 1 stocks returning an average of + 25% per year since. 1988. The Zacks Consensus The EPS estimate has remained stagnant over the past month. AMD currently has a Zacks # 1 (strong buy) rating.
Digging into the valuation, AMD currently has a forward P / E ratio of 44.25. For comparison, its sector has an average forward P / E of 20.36, which means AMD is trading at a premium to the group.
Investors should also note that AMD currently has a PEG ratio of 0.99. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. Electronics – Semiconductors held an average PEG ratio of 1.63 at yesterday’s closing price.
The Electronics – Semiconductors industry is part of the Information technology and technology sector. This industry currently has a Zacks Industry Rank of 117, which places it in the top 47% of all 250+ industries.
The Zacks Industry Rank includes is ranked from best to worst in terms of the average Zacks Rank of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock market metrics and more on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.