The latest trading session saw Advanced Micro Devices (AMD) ending at $101.67, denoting a +0.91% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 1.46%.

Heading into today, shares of the chipmaker had lost 15.69% over the past month, lagging the Computer and Technology sector's loss of 7.5% and the S&P 500's loss of 4.13% in that time.

Investors will be eagerly watching for the performance of Advanced Micro Devices in its upcoming earnings disclosure. In that report, analysts expect Advanced Micro Devices to post earnings of $0.93 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.11 billion, up 29.98% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.59 per share and revenue of $31.87 billion. These totals would mark changes of +38.67% and +23.61%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.17% lower within the past month. Advanced Micro Devices is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Advanced Micro Devices is currently being traded at a Forward P/E ratio of 21.95. This represents a premium compared to its industry's average Forward P/E of 14.77.

Also, we should mention that AMD has a PEG ratio of 0.85. 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. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 1.5.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AMD in the coming trading sessions, be sure to utilize Zacks.com.

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

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