In the latest trading session, Amkor Technology (AMKR) closed at $21.52, marking a -1.33% move from the previous day. This change lagged the S&P 500’s daily gain of 0.6%. Meanwhile, the Dow gained 1.46%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Prior to today’s trading, shares of the chip packaging and test services provider had gained 12.54% over the past month. This has outpaced the Computer and Technology sector’s loss of 6.45% and the S&P 500’s loss of 0.8% in that time.
Investors will be hoping for strength from AMKR as it approaches its next earnings release. The company is expected to report EPS of $0.38, up 46.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 14.55% from the year-ago period.
AMKR’s full-year Zacks Consensus Estimates are calling for earnings of $1.80 per share and revenue of $5.65 billion. These results would represent year-over-year changes of +28.57% and +11.78%, respectively.
Investors might also notice recent changes to analyst estimates for AMKR. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 33.33% higher. AMKR currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that AMKR has a Forward P/E ratio of 12.12 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 20.24.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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