In the last trading session, Advanced Micro Devices (AMD) closed at US $ 90.62, marking a -1.07% change compared to the previous day. This change was behind the daily loss of the S&P 500 of 0.22%. Meanwhile, the Dow lost 0.23%, and Nasdaq, a high-tech index, lost 0.38%.
As of today, the chipmaker’s shares had lost 1.14% last month. At the same time, the IT and Technology sector gained 5.2%, while the S&P 500 rose 2.78%.
AMD will try to show strength as it approaches its next earnings release. On that day, AMD projects a profit of $ 0.46 per share, which would represent a year-on-year growth of 43.75%. Our most recent consensus estimate is for quarterly revenue of $ 3 billion, an increase of 41.27% over the same period last year.
Zacks’ consensus estimates for AMD’s full year point to earnings of $ 1.23 per share and revenue of $ 9.52 billion. These results would represent year-on-year changes of + 92.19% and + 41.49%, respectively.
Any recent changes in analyst estimates for AMD should also be noted by investors. These reviews help to show the ever-changing nature of short-term business trends. Thus, the positive revisions of the estimates reflect the optimism of analysts about the company’s business and profitability.
The research indicates that these estimate revisions are directly correlated with the short-term stock price momentum. We developed Zacks Rank to capitalize on this phenomenon. Our system takes these estimation changes into account and provides a clear and practical classification model.
Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks rating system has a proven track record of superior performance, with external audit, with shares # 1 returning an average of + 25% per year since 1988. after 30 days, our EPS consensus projection remained stagnant. AMD is currently a Zacks Rank # 3 (Hold).
In terms of valuation, AMD is currently trading at a Forward P / E ratio of 74.62. Your industry has an average Forward P / E of 29.75, so we can conclude that AMD is trading with a comparatively premium.
It is also important to note that AMD currently has a PEG ratio of 1.51. This popular metric is similar to the widely known P / E ratio, with the difference that the PEG index also takes into account the company’s expected profit growth rate. Electronics – Semiconductors was maintaining an average PEG ratio of 1.51 at yesterday’s closing price.
The Electronics – Semiconductor industry is part of the IT and Technology sector. This group has a Zacks industry rating of 103, placing it among the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of individual companies in each of these sectors. Our research shows that the top 50% of the sectors outperform the bottom half by a factor of 2 to 1.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
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