In the most recent trading session, Advanced Micro Devices (AMD) closed at $90.62, an increase of -1.07% from the previous trading day. This change lags behind the daily loss of 0.22% in the S&P 500. At the same time, the Dow Jones Index fell 0.23% and the Nasdaq Index fell 0.38%.
Entering today, the chip maker’s stock has fallen 1.14% in the past month. Over the same period, the computer and technology industries rose 5.2%, while the Standard & Poor’s 500 index rose 2.78%.
When the next financial report is about to be released, AMD will show its strength. By that day, AMD is expected to report earnings per share of US$0.46, a year-on-year increase of 43.75%. Our recent consensus estimate is that quarterly revenue is 3 billion US dollars, an increase of 41
AMD’s full-year Zacks Consensus Estimates estimate earnings per share of $1.23 and revenue of $9.52 billion. These results will represent year-on-year changes of +92.19% and +41.49%, respectively.
Investors should also pay attention to any recent changes in AMD analyst estimates. These revisions help to show the changing nature of recent business trends. Therefore, the positive estimate revision reflects analysts’ optimism about the company’s business and profitability.
Research shows that these estimate revisions are directly related to recent share price momentum. We took advantage of this phenomenon to develop the Zacks Rank. Our system takes these estimation changes into account and provides a clear and feasible rating model.
The Zacks Rank system ranks from No. 1 (Strong Buy) to No. 5 (Strong Sell), and has a reliable, externally audited performance record. Since 1988, the No. 1 stock has an average annual return of + 25% . After 30 days, our consensus earnings per share forecast is still at a standstill. AMD is currently ranked third (hold) in Zacks.
In terms of valuation, AMD’s current forward P/E ratio is 74.62. The industry’s average forward P/E ratio is 29.75, so we can conclude that AMD’s transaction price is relatively high.
It is also worth noting that AMD’s current PEG ratio is 1.51. This popular indicator is similar to the well-known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. At the closing price yesterday, the average PEG ratio of electronic semiconductor companies was 1.51.
The electronics-semiconductor industry belongs to the field of computers and technology. The Zacks Industry Rank is 103, ranking in the top 41% of more than 250 industries.
The Zacks Industry Ranking includes the average Zacks Rank of each company in each industry listed in order from best to worst. Our research shows that the top 50% of industries are 2 to 1 times higher than those in the second half.
To follow AMD in the next trading hours, be sure to use Zacks.com.
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Advanced Micro Devices, Inc. (AMD): Free stock analysis report
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