Advanced Micro Devices (AMD) closed at $106.63 in the latest trading session, marking a -1% move from the prior day. This change lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 0.96%, and the Nasdaq, a tech-heavy index, added 0.81%.
Heading into today, shares of the chipmaker had gained 0.49% over the past month, lagging the Computer and Technology sector's gain of 2.69% and outpacing the S&P 500's gain of 0.19% in that time.
Advanced Micro Devices will be looking to display strength as it nears its next earnings release. In that report, analysts expect Advanced Micro Devices to post earnings of $0.68 per share. This would mark year-over-year growth of 1.49%. Meanwhile, our latest consensus estimate is calling for revenue of $5.71 billion, up 2.53% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.74 per share and revenue of $22.82 billion, which would represent changes of -21.71% and -3.32%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Advanced Micro Devices is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 39.32 right now. This represents a premium compared to its industry's average Forward P/E of 26.82.
Meanwhile, AMD's PEG ratio is currently 4.4. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 4.82 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report