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AMD's Expected EPS Rises Amidst Recent Stock Declines

AMD sees a decrease of -1.03% in its stock price with expectations of 50% EPS growth. Analysts anticipate revenue growth of nearly 30%, indicating a positive outlook amidst current market conditions.

Date: 
AI Rating:   7

Earnings Per Share (EPS)
Advanced Micro Devices (AMD) is expected to report an EPS of $0.93, representing a significant increase of 50% compared to the prior-year quarter. This expected growth in EPS is likely to positively influence investor sentiment and could stabilize or increase AMD's stock price.

Revenue Growth
The forecasted revenue for AMD is $7.11 billion, showing a 29.98% increase compared to the same quarter last year. Such growth significantly indicates the company's ability to expand and could attract more investors looking for growth opportunities.

Full Year Estimates
Analysts are projecting earnings of $4.59 per share and total revenue of $31.87 billion for the full year. These estimates represent changes of +38.67% and +23.61%, respectively, indicating a robust growth trajectory that could further bolster investor confidence and positively impact stock prices.

Market Performance
Despite a 7.52% decrease in stock price over the last month, AMD's performance has trailed the Computer and Technology sector and the S&P 500 but presents a compelling valuation, as investors weigh these fundamentals against price movements.

Zacks Rank and Analyst Estimates
Currently ranked #3 (Hold) in the Zacks Rank system, AMD's recent EPS estimate revision has decreased slightly by 0.08% within the past month. This stability suggests that while there is some concern, the overall outlook remains more positive than negative, hence investors might consider the stock for long-term holds despite short-term volatility.

Valuation Metrics
AMD's Forward P/E ratio stands at 22.78, which above the industry average of 14.49, indicating that while it may be higher-valued at present, the market is also expecting considerable growth to justify this premium valuation. Alongside, the PEG ratio of 0.89 suggests that AMD is trading at an attractive valuation given its expected earnings growth. This could be a signal for investors to look for accumulation opportunities.

Stocks:  AMD