Advanced Micro Devices (AMD) closed the latest trading day at $126.29, indicating a +1.36% change from the previous session's end. This change outpaced the S&P 500's 1.1% gain on the day. Meanwhile, the Dow experienced a rise of 0.91%, and the technology-dominated Nasdaq saw an increase of 1.35%.
The chipmaker's shares have seen a decrease of 11.71% over the last month, not keeping up with the Computer and Technology sector's gain of 5.09% and the S&P 500's gain of 0.22%.
Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.07, indicating a 38.96% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $7.52 billion, up 21.84% from the prior-year quarter.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.31 per share and revenue of $25.67 billion. These results would represent year-over-year changes of +24.91% and +13.2%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).
Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 37.68. This signifies a premium in comparison to the average Forward P/E of 15.15 for its industry.
One should further note that AMD currently holds a PEG ratio of 1.38. 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 was holding an average PEG ratio of 1.78 at yesterday's closing price.