Advanced Micro Devices (AMD) Gains As The Market Goes Down: What You Need To Know

AAdvanced Micro Devices (AMD) closed on the most recent trading day at $ 135.60, or + 1.35% from the previous trading session. This move topped the S&P 500’s 0.75% daily loss. Meanwhile, the Dow Jones lost 0.3% and the Nasdaq, an index with a strong technology component, lost 0.23%.

As of today, shares of the chipmaker had lost 8.66% over the past month. At the same time, the IT and tech sector lost 2.28%, while the S&P 500 lost 0.13%.

Wall Street will research the positivity of Advanced Micro Devices as the date of its next earnings report approaches. In this report, analysts expect Advanced Micro Devices to post earnings of $ 0.75 per share. That would mark year-over-year growth of 44.23%. Meanwhile, our latest consensus estimate projects revenue of $ 4.51 billion, up 39.04% from the previous year’s quarter.

For the full year, our Zacks consensus estimates project earnings of $ 2.64 per share and revenue of $ 16.12 billion, which would represent changes of + 104.65% and +65. , 1%, respectively, over the previous year.

It’s also important to note the recent changes to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. Thus, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.

Our research shows that these changes in estimate are directly correlated with short-term stock prices. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.

Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks Rank system has a proven and externally verified history of outperformance, with # 1 stocks returning an average of + 25% per year since 1988. Over the past month, Zacks Consensus EPS estimate has remained stagnant. Advanced Micro Devices currently holds a Zacks rank of # 2 (Buy).

In terms of valuation, Advanced Micro Devices is currently trading at a forward P / E ratio of 50.62. This valuation marks a premium over its industry’s average forward P / E of 23.81.

Additionally, it should be mentioned that AMD has a PEG ratio of 1.1. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. Electronics – Semiconductors held an average PEG ratio of 1.8 at yesterday’s closing price.

The Electronics – Semiconductors industry is part of the Information technology and technology sector. This group has a Zacks Industry Rank of 55, placing it in the top 22% of 250+ industries.

The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to track all of these stock market metrics, and more, over future trading sessions.

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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.


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