In the latest trading session, Advanced Micro Devices (AMD) closed at $96.76, marking a +0.13% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Shares of the chipmaker witnessed a loss of 12.54% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 11.69% and the S&P 500's loss of 7.29%.

The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. It is anticipated that the company will report an EPS of $0.93, marking a 50% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.11 billion, reflecting a 29.98% rise from the equivalent quarter last year.

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 might also notice recent changes to analyst estimates for Advanced Micro Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Advanced Micro Devices is currently a Zacks Rank #3 (Hold).

Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 21.05. This represents a premium compared to its industry's average Forward P/E of 13.47.

We can additionally observe that AMD currently boasts a PEG ratio of 0.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 1.54.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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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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