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Super Micro Computer (SMCI) Laps the Stock Market: Here's Why

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Super Micro Computer (SMCI - Free Report) ended the recent trading session at $46.23, demonstrating a +1.92% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq added 0.76%.

The server technology company's stock has dropped by 0.99% in the past month, falling short of the Computer and Technology sector's gain of 2.29% and the S&P 500's gain of 1.47%.

Investors will be eagerly watching for the performance of Super Micro Computer in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.75, signifying a 120.59% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, up 207.52% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.35 per share and a revenue of $28.01 billion, indicating changes of +51.58% and +87.45%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Super Micro Computer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Super Micro Computer presently features a Zacks Rank of #2 (Buy).

Digging into valuation, Super Micro Computer currently has a Forward P/E ratio of 13.54. This valuation marks a discount compared to its industry's average Forward P/E of 14.12.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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