In the latest market close, Super Micro Computer (SMCI) reached $47.27, with a -0.66% movement compared to the previous day. The stock’s change was less than the S&P 500’s daily gain of 0.4%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.63%.
The server technology company’s shares have seen an increase of 8.84% over the last month, surpassing the Computer and Technology sector’s gain of 4.88% and the S&P 500’s gain of 3.76%.
The upcoming earnings release of Super Micro Computer will be of great interest to investors. The company is predicted to post an EPS of $0.75, indicating a 120.59% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, up 207.52% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.35 per share and a revenue of $28.01 billion, signifying shifts of +51.58% and +87.45%, respectively, from the last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Super Micro Computer. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. As of now, Super Micro Computer holds a Zacks Rank of #2 (Buy).
Digging into valuation, Super Micro Computer currently has a Forward P/E ratio of 14.2. This denotes a discount relative to the industry’s average Forward P/E of 14.45.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
