Advanced Micro Devices (AMD) Surpasses Market Returns: Some Facts Worth Knowing

Advanced Micro Devices (AMD) ended the recent trading session at $160.08, demonstrating a +2.87% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.26%. Shares of the chipmaker have appreciated by 22.43% over the course of the past month, outperforming the Computer and Technology sector's gain of 7.22%, and the S&P 500's gain of 4.51%.The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. The company is scheduled to release its earnings on August 5, 2025. The company is expected to report EPS of $0.47, down 31.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.41 billion, up 26.96% from the year-ago period. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.82 per share and revenue of $31.76 billion, indicating changes of +15.41% and +23.19%, respectively, compared to the previous year. Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. 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. Over the past month, there's been a 0.89% fall in the Zacks Consensus EPS estimate. As of now, Advanced Micro Devices holds a Zacks Rank of #4 (Sell). Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 40.7. This signifies a premium in comparison to the average Forward P/E of 19.12 for its industry. It's also important to note that AMD currently trades at a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 4.19. The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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