Workflow
Advanced Micro Devices (AMD) Stock Sinks As Market Gains: Here's Why
AMDAMD(AMD) ZACKS·2025-04-28 22:50

Company Performance - Advanced Micro Devices (AMD) ended the recent trading session at 96.39,showinga0.2696.39, showing a -0.26% change from the previous day's closing price, which lagged behind the S&P 500's 0.06% gain [1] - Over the past month, AMD shares have decreased by 6.37%, underperforming the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29% [1] Upcoming Earnings Report - AMD is scheduled to release its earnings on May 6, 2025, with a forecasted EPS of 0.93, indicating a 50% increase from the same quarter last year [2] - The consensus estimate projects revenue of 7.12billion,reflectinga30.117.12 billion, reflecting a 30.11% rise from the equivalent quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates anticipate earnings of 4.41 per share and revenue of $31.37 billion, representing increases of +33.23% and +21.68% respectively from the previous year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for AMD are important as they indicate changing near-term business trends, with positive changes suggesting a favorable outlook on the company's health and profitability [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 rated stocks delivering an average annual return of +25% since 1988 [6] - Currently, AMD holds a Zacks Rank of 3 (Hold), with a 3.6% decrease in the consensus EPS estimate over the last 30 days [6] Valuation Metrics - AMD has a Forward P/E ratio of 21.9, which is higher than the industry average of 12.17, indicating that AMD is trading at a premium [7] - The company has a PEG ratio of 0.9, compared to the Computer - Integrated Systems industry's average PEG ratio of 1.54, suggesting a more favorable valuation relative to expected earnings growth [8] Industry Context - The Computer - Integrated Systems industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 160, placing it in the bottom 36% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]