Advanced Micro Devices (AMD) closed at $504.19 in the latest trading session, marking a +2.18% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.45%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.78%.
Prior to today’s trading, shares of the chipmaker had lost 2.49% lagged the Computer and Technology sector’s loss of 1.27% and the S&P 500’s loss of 1.99%.
Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company’s upcoming EPS is projected at $1.9, signifying a 58.33% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.06 billion, reflecting a 41.3% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.48 per share and revenue of $50.5 billion. These totals would mark changes of +79.38% and +45.79%, respectively, from last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there’s been a 0.18% fall in the Zacks Consensus EPS estimate. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
In terms of valuation, Advanced Micro Devices is currently trading at a Forward P/E ratio of 65.97. Its industry sports an average Forward P/E of 20.72, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.
Meanwhile, AMD’s PEG ratio is currently 4.4. 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. The Computer – Integrated Systems industry had an average PEG ratio of 0.59 as trading concluded yesterday.
The Computer – Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 13% of all 250+ industries.
