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Advanced Micro Devices (AMD) closed the most recent trading day at $30.64, moving +1.96% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the chipmaker had lost 5.8% over the past month, lagging the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 3.23% in that time.
AMD will be looking to display strength as it nears its next earnings release. On that day, AMD is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 38.46%. Meanwhile, our latest consensus estimate is calling for revenue of $1.80 billion, up 9.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.63 per share and revenue of $6.76 billion, which would represent changes of +36.96% and +4.43%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AMD. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant within the past month. AMD is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AMD's current valuation metrics, including its Forward P/E ratio of 47.83. For comparison, its industry has an average Forward P/E of 19.58, which means AMD is trading at a premium to the group.
It is also worth noting that AMD currently has a PEG ratio of 2.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors industry currently had an average PEG ratio of 2.03 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.