ADVANCED MICRO DEVICES (NASDAQ:AMD) stands out as a high-growth momentum candidate with a solid technical setup, making it a stock worth watching. The company’s strong earnings momentum, combined with favorable technical conditions, suggests potential for further upside.
Growth Momentum Highlights
Earnings Growth: AMD’s EPS grew 37.1% year-over-year (TTM), with recent quarterly growth accelerating to 54.8% in the latest quarter.
Sales Momentum: Revenue increased 21.7% over the past year, with the most recent quarter showing 35.9% growth.
Profit Margins Expanding: The latest quarter’s profit margin improved to 9.53%, up from 6.29% in the prior quarter.
Positive Surprises: AMD has beaten EPS estimates in 3 of the last 4 quarters, with an average beat of 36.8%.
Analyst Revisions: While next-year EPS estimates have seen downward revisions, revenue expectations remain stable with a 0.7% upward adjustment over the past three months.
Technical Strength & Setup
Technical Rating (9/10): AMD is in a strong uptrend, with both short-term and long-term trends positive. The stock is trading near its recent highs, supported by rising moving averages.
Setup Quality (7/10): While the stock is extended in the short term, consolidation near resistance could present an opportunity. Key support levels are at $140.23-$141.46 and $134.79-$136.29.
Relative Strength: AMD outperforms 86% of stocks in the market, though it lags slightly behind the S&P 500’s recent highs.
Potential Entry: A breakout above $146.44 could signal further upside, with a stop-loss near $140.22 for risk management.
This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.