AMD Receives Mixed Ratings From Growth Investor Model

AMD Shows Growth Potential Despite Weak EPS Metrics. The latest report highlights AMD's performance under a growth strategy, revealing both strengths and significant weaknesses.

Date: 22-02-2025

AI Rating: 5

Rating Breakdown for AMD

According to the report, AMD shows a rating of 46% according to the Growth Investor model, which indicates moderate interest based on its fundamentals and valuation. However, scores of 80% and above usually indicate stronger interest, suggesting AMD has not fully met growth expectations.

Revenue Growth

AMD passes the revenue growth in relation to EPS growth and sales growth rate metrics, indicating positive sales performance. This suggests potential for continued expansion and could positively impact stock prices if confirmed in ongoing performance.

Earnings Per Share (EPS)

While AMD passed some earnings metrics, it notably fails in several EPS categories, including positive earnings growth rate for the current quarter and EPS growth for the current quarter compared to prior quarters. This is concerning, as earnings performance directly relates to profitability and investor sentiment.

Overall Analysis

The stock fails in key areas crucial for growth investment, including long-term EPS growth, earnings persistence, and the current quarter EPS growth exceeding historical growth rates. Such failures may generate negative investor sentiment as they indicate instability and potential volatility in earnings.

On the other hand, the firm shows a strong standpoint with its total debt/equity ratio and insider transactions metrics, which might support investor confidence. However, the mixed results could lead to cautious trading behavior.

Stocks: AMD