An interesting stock that came up in some of our conversations today is Advanced Micro Devices, Inc. (NASDAQ:AMD). At current price of $49.76, the shares have already added 1.22 points (2.51% higher) from its previous close of $48.54. Should you buy or avoid them? The stock sets an active trading volume day with a reported 11760081 contracts so far this session. AMD shares had a relatively better volume day versus average trading capacity of 52.85 million shares, but with a 1.11 billion float and a 1.49% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AMD stock indicates that the average analyst price target is $39.99 per share. This means the stock has a potential decrease of -19.63% from where the AMD share price has been trading recently.
During the recent trading session for Advanced Micro Devices, Inc. (NASDAQ:AMD), the company witnessed their stock rise $0.52 over a week and surge $6.72 from the price 20 days ago. When compared to their established 52-week high of $49.96, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 09/01/20. The recent low of $19.02 stood for a -0.39% since 01/17/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 3.1 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Advanced Micro Devices, Inc., the two-week RSI stands at 69.71. This figure suggests that AMD stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current AMD readings is similarly very revealing as it has a stochastic reading of 77.14% at this stage. This figure means that AMD share price today is being oversold.
Technical chart claims that Advanced Micro Devices, Inc. (AMD) would settle between $49.04/share to $49.54/share level. However, if the stock price goes below the $48.08 mark, then the market for Advanced Micro Devices, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $47.62 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.24. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Mizuho raised their recommendation on shares of AMD from Neutral to Buy in their opinion released on January 09. Wells Fargo analysts again handed out a Overweight recommendation to Advanced Micro Devices, Inc. (NASDAQ:AMD) stock but they lifted target price for the shares in a flash note issued to investors on January 07. The target price has been raised from $48 to $55. Analysts at Nomura are sticking to their Buy stance. However, on January 02, they lifted price target for these shares to $58 from $40.
AMD equity has an average rating of 2.68, with the figure leaning towards a bullish end. 36 analysts who tracked the company were contacted by Reuters. Amongst them, 20 rated the stock as a hold while the remaining 16 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 14 analysts rated Advanced Micro Devices, Inc. (NASDAQ:AMD) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, AMD stock price is currently trading at 43.62X forward 12-month Consensus EPS estimates, and its P/E ratio is 255.5 while for the average stock in the same group, the multiple is 27.1. Advanced Micro Devices, Inc. current P/B ratio of 26 means it is trading at a premium against its industry’s 4.9.
Advanced Micro Devices, Inc. (AMD)’s current-quarter revenues are projected to climb by nearly 48.5% to hit $2.11 billion, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over 3.7% from $6.47 billion to a noteworthy $6.71 billion. At the other end of the current quarter income statement, Advanced Micro Devices, Inc. is expected to see its adjusted earnings surge by roughly 287.5% to hit $0.31 per share. For the fiscal year, AMD’s earnings are projected to climb by roughly 34.8% to hit $0.62 per share.