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Amkor Technology (AMKR) Stock Sinks As Market Gains: Here's Why

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The most recent trading session ended with Amkor Technology (AMKR - Free Report) standing at $30.36, reflecting a -0.99% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.13%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.52%.

The the stock of chip packaging and test services provider has fallen by 5.84% in the past month, lagging the Computer and Technology sector's gain of 1.56% and the S&P 500's gain of 3.67%.

The investment community will be paying close attention to the earnings performance of Amkor Technology in its upcoming release. The company is forecasted to report an EPS of $0.50, showcasing a 7.41% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.84 billion, up 0.78% from the year-ago period.

AMKR's full-year Zacks Consensus Estimates are calling for earnings of $1.54 per share and revenue of $6.51 billion. These results would represent year-over-year changes of +5.48% and +0.15%, respectively.

Any recent changes to analyst estimates for Amkor Technology should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Amkor Technology holds a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Amkor Technology is presently being traded at a Forward P/E ratio of 19.97. This indicates a discount in contrast to its industry's Forward P/E of 28.24.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 134, finds itself in the bottom 48% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AMKR in the coming trading sessions, be sure to utilize Zacks.com.


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