Advanced Micro Devices (AMD) closed the latest trading day at $86.26, indicating a +0.82% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 2.51%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 2.71%.

Coming into today, shares of the chipmaker had lost 24.85% in the past month. In that same time, the Computer and Technology sector lost 12.18%, while the S&P 500 lost 8.86%.

Market participants will be closely following the financial results of Advanced Micro Devices in its upcoming release. The company plans to announce 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.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.55 per share and revenue of $31.6 billion. These totals would mark changes of +37.46% and +22.55%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 1.2% lower within the past month. As of now, Advanced Micro Devices holds a Zacks Rank of #3 (Hold).

Digging into valuation, Advanced Micro Devices currently has a Forward P/E ratio of 18.82. For comparison, its industry has an average Forward P/E of 10.72, which means Advanced Micro Devices is trading at a premium to the group.

One should further note that AMD currently holds a PEG ratio of 0.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 199, positioning it in the bottom 20% 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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