Advanced Micro Devices (AMD) Dips More Than Broader Market: What You Should Know

In the latest close session, Advanced Micro Devices (AMD) was down 6.89% at $540.88. The stock trailed the S&P 500, which registered a daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.66%. The stock of chipmaker has risen by 11.38% in the past month, leading the Computer and Technology sector's loss of 2.58% and the S&P 500's loss of 1.21%.Analysts and investors alike will be keeping a close eye on the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.6, indicating a 233.33% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.27 billion, indicating a 46.67% growth compared to the corresponding quarter of the prior year. AMD's full-year Zacks Consensus Estimates are calling for earnings of $7.18 per share and revenue of $48.8 billion. These results would represent year-over-year changes of +72.18% and +40.87%, respectively. Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Advanced Micro Devices presently features a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 80.95 right now. For comparison, its industry has an average Forward P/E of 30.14, which means Advanced Micro Devices is trading at a premium to the group. We can additionally observe that AMD currently boasts a PEG ratio of 1.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AMD's industry had an average PEG ratio of 1.09 as of yesterday's close. The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250. 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. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks