In the latest trading session, Super Micro Computer (SMCI) closed at $81.91, up +1.63% from the previous day. The change lagged behind his 1.75% rise in the S&P 500 on the day. The Dow rose 1.05% and the tech stock Nasdaq rose 7.84%.
Entering today, the server technology company’s shares fell 10.67% last month. At the same time, the computer and technology sector fell his 7.05% and the S&P 500 fell his 4.4%.
Super microcomputers are looking to show some strength as the next earnings call draws near. The company expects to report his EPS of $2.76, up 213.64% from the same period last year. Meanwhile, the latest consensus forecast calls for revenue of $1.75 billion, up 49.27% from the same period last year.
SMCI’s full-year Zacks consensus forecast calls for earnings of $9.58 per share and earnings of $6.8 billion. These results represent changes of +69.56% and +30.86% year-over-year, respectively.
Investors should also be aware of recent changes to analyst estimates for super microcomputers. These revisions help demonstrate the ever-changing nature of his short-term business trends. With this in mind, the positive estimate revision can be seen as an optimistic sign about the company’s business prospects.
Research shows that these revisions to estimates are directly correlated with near-term stock price momentum. To benefit from this, we have developed a proprietary model, Zacks Rank, that takes into account the changes in these estimates and provides a practical rating system.
The Zacks rank system ranges from 1st (strong buy) to 5th (strong sell). Since 1988, the #1 stocks have averaged 25% annualized returns. During this past month, Zacks Consensus’s estimate of his EPS has remained stagnant. The super microcomputer currently boasts the #1 Zachs rank (strong buy).
Valuations are also important, so investors should be aware that the super microcomputer currently has a forward P/E of 8.41. For comparison, the average forward P/E for that industry is 15.57, meaning that super microcomputers are trading at a discount to the group.
The computer storage device industry is part of the computer and technology sector. The industry currently has a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries.
Zacks Industry Rank measures the strength of an industry group by measuring the average Zacks Rank of individual stocks within the group. Our research shows that industries rated in the top 50% are two to one times better than those in the bottom half.
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Super Micro Computer, Inc. (SMCI) : Free Inventory Analysis Report
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