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Super Micro Computer (SMCI) closed the most recent trading day at $38.90, moving -0.61% from the previous trading session. This change lagged the S&P 500's daily gain of 1.12%. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 1.46%.
The server technology company's stock has climbed by 34.22% in the past month, exceeding the Computer and Technology sector's loss of 7.5% and the S&P 500's loss of 4.13%.
Market participants will be closely following the financial results of Super Micro Computer in its upcoming release. The company is predicted to post an EPS of $0.59, indicating a 11.94% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.34 billion, up 38.58% from the year-ago period.
SMCI's full-year Zacks Consensus Estimates are calling for earnings of $2.66 per share and revenue of $23.74 billion. These results would represent year-over-year changes of +20.36% and +58.89%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Super Micro Computer. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 14.29% lower. Super Micro Computer presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Super Micro Computer is currently being traded at a Forward P/E ratio of 14.71. This indicates a premium in contrast to its industry's Forward P/E of 12.82.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.