Knowing facts before you bet on it

Extended micro devices (AMD) has recently been one of the most sought stocks on Zacks.com. Perhaps you would like to see some of the facts that could affect the performance of the stock at short notice.

In the past month, the shares of this chipmaker have returned +14.4% compared to changing the Zack S&P 500 Composite +9.1%. During this time, the Zack's computer – Integrated Systems Industry in which the micro falls, has increased by 16.4%. The key question now is: What could be the future direction of the stock?

Although media reports or rumors about a significant change in the business prospects of a company generally lead to the fact that its shares lead to trend and an immediate change in price, there are always certain basic factors that ultimately advance the purchase and hate decision.

Instead of concentrating on anything else, we prioritize the evaluation of the change in the profit projection of a company at Zacks. This is due to the fact that we believe that the current value for its shares is determined by the cash value of his future profit current.

We essentially take a look at how analysts that cover the shares reveal their profit estimates in order to reflect the effects of the latest business trends. And if the profit estimates for a company rise, the current value for its shares increases. A higher atmosphere to be used than the current market price gives investors the interest for buying the share, which leads at a higher price. For this reason, empirical research shows a strong correlation between trends in the revisions of the yield estimate and short -term share price movements.

For the current quarter, Advanced Micro is expected to make a profit of $ 0.65 per share, which indicates a change of -5.8% compared to the previous year. The Zacks Consensus estimate has changed in the past 30 days by -42.4%.

For the current financial year, the consensus estimate of $ 4.09 changes to a change of +23.6% compared to the previous year. This estimate has changed in the past 30 days.

For the next financial year, the consensus assessment of $ 5.70 shows a change of +39.4% compared to what is expected, what is expected. The estimate of -4.9%has changed last month.

With an impressive external, tested success balance sheet is our proprietary stock assessment tool and the Zacks-rank-rank-a more cozy indicator for the short-term price-performance of a share, since it effectively uses the power of the profit assessment revisions. The size of the recent change in the consensus estimate and three other factors in connection with the profit estimates led to a Zacks rank #3 (hold) for Advanced Micro.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for AMD _12MonthepScharturl

Although the profit growth of a company is probably the best indicator of its financial health, not much happens if it cannot increase its income. It is almost impossible for a company to increase its income without increasing its sales over long periods of time. It is therefore crucial to know the potential sales growth of a company.

For Advanced Micro, consensus sales for the current quarter of $ 7.41 billion shows a change of +27%compared to the previous year. For the current and next financial years, estimates of USD 31.79 billion and 37.01 billion USD +23.3% or +16.4% make changes.

Advanced Micro reported sales of $ 7.44 billion in the last quarter, which corresponds to a change of +35.9%compared to the previous year. EPS of $ 0.96 for the same period comparable to USD 0.62 a year ago.

Compared to the Zacks Consensus estimate of 7.12 billion US dollars, the registered income is a surprise of +4.45%. The EPS surprise was +3.23%.

The company defeated consensus -epseps estimates in each of the following four quarters. The company exceeded consensus sales every time.

No investment decision can be efficient without taking into account the evaluation of a share. Whether the current price of a share rightly reflects the internal value of the underlying business and the growth prospects of the company is an essential determinant for future price -performance.

The comparison of the current value of the valuation multipliers of a company, such as

The Zacks Value Style Score (part of the Zacks Style Scores Systems), which pays attention to the grade of stocks from A to F both traditional and unconventional valuation metrics (AA is better than a C; and so on) is rather helpful to identify whether a share is overrated, legally valued or temporarily accommodated.

Advanced Micro is evaluated on this Front D, which points out that it is about a bonus with his colleagues. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and a lot of other information about Zacks.com could help determine whether it is worth paying attention to the market threshold via Advanced Micro. However, the Zacks ranked 3rd indicate that it is in line with the broader market at short notice.

Would you like the latest recommendations from Zack's Investment Research? Today you can download 7 best stocks for the next 30 days. Click here to receive this free report

Advanced Micro Devices, Inc. (AMD): Free stock analysis report

This article was originally published in Zack's Investment Research (Zacks.com).

Zacks Investment Research

Leave a Comment Cancel reply