What to expect from Advanced Micro Instruments on Tuesday
Advanced Micro Devices, Inc. Will report earnings after the end of Tuesday. The stock hit a record high of $164.46/share in 2021 and is currently trading near $60/share. The stock is prone to big moves after reporting earnings and can easily gap up when the numbers are strong. Conversely, if the numbers disappoint, the stock could easily go down. To help you prepare, Street is looking forward to:
The company expects a profit of $0.55/share on revenue of $5.58 billion. Meanwhile, the so-called whisper number is a profit of $0.49/share. The Whisper number is the Street’s unofficial outlook on earnings.
A closer look at the fundamentals:
AMD is a major semiconductor stock that has been under pressure throughout the year, along with the entire chip sector. The good news for the bulls is that the stock is now considered cheaper than in the fourth quarter of 2021. Price to earnings (P/E) ratio has come down to just 16 which is low for most semiconductor stocks.
A closer look at the tech:
Technically, the stock is in a private bear market as it is down more than 63% from its 52-week high. Bulls want the stock to (and stay) above its falling 50-day moving average line, while bears want it to break out of recent lows and continue falling. There is a lot of technical damage in stock that needs to be repaired, it will probably take some time for that damage to be repaired.
Pay attention to how the stock reacts to the news,
From where I sit, the most important feature I look for during earnings season is how the market and a specific company react to the news. Remember, always keep your losses small and never argue with tape.
Disclosure: Stock is featured in the first FindLeadingStocks.com report good.
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