In the latest market close, Advanced Micro Devices (AMD) reached $102.74, with a -0.47% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.55%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.14%.

Shares of the chipmaker have appreciated by 3.36% over the course of the past month, outperforming the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22%.

The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. 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 $7.12 billion, up 30.04% from the year-ago period.

AMD's full-year Zacks Consensus Estimates are calling for earnings of $4.59 per share and revenue of $31.91 billion. These results would represent year-over-year changes of +38.67% and +23.74%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Currently, Advanced Micro Devices is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Advanced Micro Devices is at present trading with a Forward P/E ratio of 22.47. This signifies a premium in comparison to the average Forward P/E of 13.57 for its industry.

One should further note that AMD currently holds a PEG ratio of 0.87. 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 1.47.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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