Advanced Micro Devices (AMD) closed the most recent trading day at $126.29, moving +1.36% from the end of the previous session. The change outpaced the S&P 500’s daily gain of 1.1%. Meanwhile, the Dow was up 0.91% and the tech-dominated Nasdaq was up 1.35%.

Shares of the chipmaker have declined 11.71% over the past month, underperforming the Computer and Technology sector’s gain of 5.09% and the S&P 500’s gain of 0.22%.

Analysts and investors will be keeping a close eye on Advanced Micro Devices’ performance in its upcoming earnings release. The company is expected to report earnings per share of $1.07, representing growth of 38.96% compared to the prior-year quarter. Meanwhile, our most recent consensus estimate is calling for revenue of $7.52 billion, up 21.84% from the prior-year quarter.

AMD’s full-year Zacks Consensus Estimates are calling for earnings of $3.31 per share and revenue of $25.67 billion. These results would represent year-over-year changes of +24.91% and +13.2%, respectively.

Additionally, investors should keep an eye on recent revisions to analyst forecasts for Advanced Micro Devices. Such recent changes usually signify the changing landscape of short-term business trends. As a result, upward estimate revisions reflect analysts’ positive view on the company’s operations and ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term share price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable valuation model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of exceeding expectations as verified by third-party audits, with #1 stocks posting an average annual Deliver returns of +25%. since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Advanced Micro Devices currently has a Zacks Rank #3 (Hold).

Looking at valuation, Advanced Micro Devices currently has a Forward P/E ratio of 37.68. This represents a premium compared to its industry’s average Forward P/E of 15.15.

It should also be noted that AMD currently has a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Computer – Integrated Systems had an average PEG ratio of 1.78 as of yesterday’s closing price.

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