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Advanced Micro Devices (AMD) ended the recent trading session at $159.54, demonstrating a +2.39% change from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.3%. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq gained 0.03%.
Shares of the chipmaker witnessed a loss of 10.94% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.1%, and the S&P 500’s gain of 2.09%.
Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.17, indicating a 27.17% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $8.71 billion, reflecting a 27.77% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.95 per share and a revenue of $32.73 billion, demonstrating changes of +19.34% and +26.92%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.34% higher. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 39.49. This represents a premium compared to its industry average Forward P/E of 20.71.
Investors should also note that AMD has a PEG ratio of 1.46 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As of the close of trade yesterday, the Computer – Integrated Systems industry held an average PEG ratio of 1.95.
The Computer – Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 33, this industry ranks in the top 14% of all industries, numbering over 250.
