In the latest trading session, Super Micro Computer (SMCI) closed at $36.43, marking a +1.73% move from the previous day. This move outpaced the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 1.26%.
The server technology company's shares have seen an increase of 3.14% over the last month, surpassing the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77%.
The upcoming earnings release of Super Micro Computer will be of great interest to investors. The company is forecasted to report an EPS of $0.52, showcasing a 22.39% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.34 billion, up 38.58% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.52 per share and a revenue of $23.78 billion, indicating changes of +14.03% and +59.17%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Super Micro Computer. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Super Micro Computer possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Super Micro Computer's current valuation metrics, including its Forward P/E ratio of 14.21. This represents a premium compared to its industry's average Forward P/E of 12.2.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
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