ADVANCED MICRO DEVICES (NASDAQ:AMD) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with improving price action, making it worth a closer look for investors seeking growth opportunities.
Growth Fundamentals
Strong Revenue & Earnings Growth: AMD has delivered impressive growth, with revenue increasing by 21.7% over the past year and earnings per share (EPS) growing at 37.1%. The company’s five-year average revenue growth stands at 30.8%, well above industry norms.
Future Growth Prospects: Analysts expect EPS to grow by 27.1% annually over the next few years, reinforcing its position as a high-growth semiconductor player.
Valuation: While AMD trades at a P/E of 30.25, it remains cheaper than many industry peers, with 60.9% of semiconductor stocks priced higher.
Financial Health & Profitability
Solid Balance Sheet: AMD maintains a healthy debt-to-equity ratio of 0.07 and a strong Altman-Z score of 8.86, indicating low bankruptcy risk.
Profit Margins: Operating margins stand at 10.2%, outperforming 61.8% of industry competitors. Gross margins have also improved, reaching 50.1%.
Technical Setup
Bull Flag Pattern: AMD is currently forming a bull flag, suggesting a potential continuation of its recent uptrend.
Support & Resistance: Key support lies near $109.29-$110.31, while resistance levels are found at $112.97-$113.65 and $117.17-$119.50. A breakout above these levels could signal further upside.
Improving Trend: The short-term trend is positive, while the long-term trend is neutral but improving.
This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.