In the latest trading session, Advanced Micro Devices (AMD) closed at $90.62, marking a -1.07% move from the previous day. This change lagged the S&P 500’s daily loss of 0.22%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, lost 0.38%.
Coming into today, shares of the chipmaker had lost 1.14% in the past month. In that same time, the Computer and Technology sector gained 5.2%, while the S&P 500 gained 2.78%.
AMD will be looking to display strength as it nears its next earnings release. On that day, AMD is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 43.75%. Our most recent consensus estimate is calling for quarterly revenue of $3 billion, up 41.27% from the year-ago period.
AMD’s full-year Zacks Consensus Estimates are calling for earnings of $1.23 per share and revenue of $9.52 billion. These results would represent year-over-year changes of +92.19% and +41.49%, respectively.
Any recent changes to analyst estimates for AMD should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AMD is currently a Zacks Rank #3 (Hold).
In terms of valuation, AMD is currently trading at a Forward P/E ratio of 74.62. Its industry sports an average Forward P/E of 29.75, so we one might conclude that AMD is trading at a premium comparatively.
It is also worth noting that AMD currently has a PEG ratio of 1.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Electronics – Semiconductors was holding an average PEG ratio of 1.51 at yesterday’s closing price.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
