Super Micro Computer (SMCI) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Super Micro Computer (SMCI) closed at $47.11 in the latest trading session, marking a -2.99% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, lost 0.92%. Shares of the server technology company have appreciated by 16.87% over the course of the past month, outperforming the Computer and Technology sector's gain of 7.88%, and the S&P 500's gain of 5.22%.The investment community will be closely monitoring the performance of Super Micro Computer in its forthcoming earnings report. The company is forecasted to report an EPS of $0.44, showcasing a 30.16% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $5.92 billion, showing a 11.62% escalation compared to the year-ago quarter. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.07 per share and revenue of $22.14 billion, indicating changes of -6.33% and 0%, respectively, compared to the previous year. Any recent changes to analyst estimates for Super Micro Computer should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 7.63% lower. As of now, Super Micro Computer holds a Zacks Rank of #5 (Strong Sell). Valuation is also important, so investors should note that Super Micro Computer has a Forward P/E ratio of 18.37 right now. Its industry sports an average Forward P/E of 13.89, so one might conclude that Super Micro Computer is trading at a premium comparatively. The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 35% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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 Super Micro Computer, Inc. (SMCI): 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