Advanced Micro Devices (AMD) Outpaces Stock Market Gains: What You Should Know

Advanced Micro Devices (AMD) closed the most recent trading day at $161.34, moving +1.18% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.48%. Shares of the chipmaker have depreciated by 1.95% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.4%, and the S&P 500's gain of 2.87%.Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. In that report, analysts expect Advanced Micro Devices to post earnings of $1.17 per share. This would mark year-over-year growth of 27.17%. Simultaneously, our latest consensus estimate expects the revenue to be $8.71 billion, showing a 27.77% escalation compared to the year-ago quarter. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.95 per share and revenue of $32.73 billion. These totals would mark changes of +19.34% and +26.92%, respectively, from last year. Any recent changes to analyst estimates for Advanced Micro Devices should also be noted by investors. 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 business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.32% lower within the past month. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now. Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 40.41 right now. This valuation marks a premium compared to its industry average Forward P/E of 23.21. We can also see that AMD currently has a PEG ratio of 1.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.75 at the close of the market yesterday. The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 250 industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks