Amkor Technology (AMKR) Falls More Steeply Than Broader Market: What Investors Need to Know

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Amkor Technology (AMKR) closed the most recent trading day at $26.06, moving -1.29% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.11%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.49%.

Prior to today's trading, shares of the chip packaging and test services provider had gained 1.46% over the past month. This has lagged the Computer and Technology sector's gain of 5.27% and outpaced the S&P 500's gain of 0.4% in that time.

The investment community will be closely monitoring the performance of Amkor Technology in its forthcoming earnings report. The company's upcoming EPS is projected at $0.37, signifying a 22.92% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.65 billion, showing a 5.78% drop compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.38 per share and a revenue of $6.34 billion, indicating changes of -5.48% and -2.52%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Amkor Technology. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Amkor Technology boasts a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Amkor Technology is currently trading at a Forward P/E ratio of 19.13. This indicates a discount in contrast to its industry's Forward P/E of 39.71.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 131, this industry ranks in the bottom 48% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.