In the latest trading session, Advanced Micro Devices (AMD) closed at $21.30, marking a +0.85% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq added 0.42%.
Prior to today's trading, shares of the chipmaker had lost 3.3% over the past month. This has lagged the Computer and Technology sector's loss of 1.79% and the S&P 500's loss of 1.1% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release, which is expected to be January 29, 2019. On that day, AMD is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $1.45 billion, down 1.78% from the year-ago period.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $6.54 billion. These results would represent year-over-year changes of +170.59% and +22.65%, respectively.
Investors might also notice recent changes to analyst estimates for AMD. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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).
Digging into valuation, AMD currently has a Forward P/E ratio of 45.75. This valuation marks a premium compared to its industry's average Forward P/E of 16.77.
We can also see that AMD currently has a PEG ratio of 3.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AMD's industry had an average PEG ratio of 1.52 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
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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.