Advanced Micro Devices, Inc. (NASDAQ:AMD) persists its position slightly strong in context of buying side, while shares price knock down -1.17% during latest trading session. AMD need to pay close attention to the stock based on moves in the options market lately. That is because the Put which expires on Apr 21, 2017 for the $4.00 strike price had some of the highest implied volatility of all equity options recently.
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility could mean that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that could cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy
Profitability Ratio Analysis; To measure firm’s performance and profitability, we focus on ordinary profitability ratio, AMD has gross profit margin of 23.40% for trailing twelve months and operating margin is calculated as -8.70%, these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the Advanced Micro Devices, Inc. (NASDAQ:AMD)’s ROI concludes as -25.90%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments. The returns on assets of firm also on noticeable level, it has ROA of -15.00%, which signifies how profitable a firm is relative to its total assets.
Experts’ Critical Views
Fundamentalist can give brighter side of a picture but an analyst can glow the darker parts stored in any investment. Let us view how analysts have ranked AMD in recent few months. In ratings table the AMD given BUY ratings by 11 analysts in current phase and 2 analysts suggest it as overweight security. The 3 number of analyst have SELL recommendation for current month on AMD. While 15 number of analysts gave ratings for HOLD in current. As per remarks given by WSJ, overall consensus pool recommends it as Overweight security.
The stock was assessed in terms of profitability as current quarter EPS estimate trends showed $-0.04 at current month while compared with $-0.04 in a month ago. The stock next year first quarter current estimate trend for EPS was for $-0.01 and on annual basis FY 2016 estimate trends at current was for $0.08 as compared to one month ago of $0.07, and for next year per share earnings estimates have $0.28.
Advanced Micro Devices, Inc. (NASDAQ:AMD) holds price to book ratio of 30.66 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation.
Taking look on ratio analysis, AMD has forward price to earnings ratio of 46.04. The co is calculating price to free cash flow it concluded at 972.32, the low single digit may indicate stock is undervalued and vice versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
To make strengthen these views, the active industry firm has Quick Ratio of 1.30, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the Advanced Micro Devices, Inc. (NASDAQ:AMD) has debt to equity ratio of 3.45, sometimes it remain same with long term debt to equity ratio. The firm has price volatility of 3.00% for a week and 4.48% for a month. Its beta stands at 2.62 times. Narrow down four to firm performance, its weekly performance was -3.02% and monthly performance was 1.43%.