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The most recent trading session ended with Super Micro Computer (SMCI) standing at $31.12, reflecting a +0.42% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.21%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.89%.
Coming into today, shares of the server technology company had lost 3.85% in the past month. In that same time, the Computer and Technology sector lost 2.15%, while the S&P 500 lost 1.56%.
Analysts and investors alike will be keeping a close eye on the performance of Super Micro Computer in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.75, signifying a 33.93% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.8 billion, indicating a 58.32% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.16 per share and a revenue of $24.05 billion, indicating changes of +42.99% and +60.95%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Super Micro Computer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Currently, Super Micro Computer is carrying a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Super Micro Computer is presently being traded at a Forward P/E ratio of 9.82. Its industry sports an average Forward P/E of 13.23, so one might conclude that Super Micro Computer is trading at a discount comparatively.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 233, this industry ranks in the bottom 8% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.