Advanced Micro Devices, Inc. (NASDAQ:AMD) persists its position slightly strong in context of buying side, while shares price rose 4.23% during latest trading session. As AMD’s price persists to go up, it needs to analyze what AMD executives are saying in regards to “growth.” It can look at their predictions, and do some comparisons with Intel’s (NASDAQ:INTC) margins to see where AMD could be in 2018 with all systems “go.”
CEO Su declared double-digit market share for servers. A 15% share in 2018 could be worth $2.5 billion in revenue. Using a 55% gross margin percentage for Zen servers gives profit over $1 billion or more than $1 per share just from servers. This does not include the large revenue increases to be expected on desktops and laptops or the new Polaris and Vega GPUs.
Narrow down focus to other ratios, the co has current ratio of 1.90 that indicates if AMD lies in 1.3% to 3% then it is acceptable for both active and passive investors, but sometimes its varies industry to industry. Generally, it indicates good short-term financial strength. Street is more conscious on this after SunEdison, Inc. case. To make strengthen these views, the active industry firm has Quick Ratio of 1.40, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 4.24, sometimes its remain same with long term debt to equity ratio.
Analog Devices, Inc. (NASDAQ:ADI) also run on active notice, stock price surged 0.64% after traded at $74.31 in most recent trading session.
ADI has price to earnings ratio of 26.74 and the price to current year EPS stands at 25.50%. Whereas the traders who further want to see about this, may be interested to see Price to next year’s EPS that would be 10.76%. The earning yield also gives right direction to lure investment, as the co has 2.28% dividend yield. Moving toward ratio analysis, it has current ratio of 6.40 and quick ratio was calculated as 5.90. The debt to equity ratio appeared as 0.34 for seeing its liquidity position.
Taking notice on volatility measures, price volatility of stock was 1.13% for a week and 2.10% for a month. The price volatility’s Average True Range for 14 days was 1.44. On these bases, analysts would recommend this stock as an “Active Revolving Stocks.” The firm attains analyst recommendation of 2.10 out of 1-5 scale with week’s performance of 2.43%. ADI’s institutional ownership was registered as 89.50%, while insider ownership was 0.10%.