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Advanced Micro Devices (AMD) Rises Higher Than Market: Key Facts

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Advanced Micro Devices (AMD - Free Report) ended the recent trading session at $158.32, demonstrating a +1% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.56%.

The the stock of chipmaker has risen by 4.51% in the past month, leading the Computer and Technology sector's loss of 0.11% and the S&P 500's gain of 1.65%.

The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. In that report, analysts expect Advanced Micro Devices to post earnings of $0.91 per share. This would mark year-over-year growth of 30%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.71 billion, indicating a 15.71% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $3.36 per share and a revenue of $25.55 billion, demonstrating changes of +26.79% and +12.66%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 46.68. For comparison, its industry has an average Forward P/E of 27.95, which means Advanced Micro Devices is trading at a premium to the group.

Meanwhile, AMD's PEG ratio is currently 1.63. 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. AMD's industry had an average PEG ratio of 2.18 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.


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