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Advanced Micro Devices (AMD) Gains As Market Dips: What You Should Know

Advanced Micro Devices (AMD) closed at $67.94 in the latest trading session, marking a +0.06% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the chipmaker had lost 13.75% in the past month. In that same time, the Computer and Technology sector lost 4.64%, while the S&P 500 lost 3.29%.

Investors will be hoping for strength from Advanced Micro Devices as it approaches its next earnings release. The company is expected to report EPS of $1.05, up 43.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.68 billion, up 54.79% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.35 per share and revenue of $26.16 billion, which would represent changes of +55.91% and +59.21%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.94% lower within the past month. Advanced Micro Devices currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Advanced Micro Devices is holding a Forward P/E ratio of 15.62. This valuation marks a premium compared to its industry's average Forward P/E of 12.81.

Investors should also note that AMD has a PEG ratio of 0.58 right now. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1 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 160, which puts it in the bottom 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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