The latest trading session saw Advanced Micro Devices (AMD) ending at $94.50, denoting a +1.18% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.79% for the day. On the other hand, the Dow registered a gain of 0.78%, and the technology-centric Nasdaq increased by 0.64%.

Prior to today's trading, shares of the chipmaker had lost 7.5% over the past month. This has lagged the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56% in that time.

The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. The company is scheduled to release its earnings on May 6, 2025. The company is expected to report EPS of $0.93, up 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.12 billion, up 30.11% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.59 per share and a revenue of $31.72 billion, signifying shifts of +38.67% and +23.02%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Right now, Advanced Micro Devices possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Advanced Micro Devices is currently exchanging hands at a Forward P/E ratio of 20.36. This valuation marks a premium compared to its industry's average Forward P/E of 11.2.

Also, we should mention that AMD has a PEG ratio of 0.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.32 at the close of the market yesterday.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 37% echelons of all 250+ industries.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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