Super Micro Computer (SMCI) Stock Sinks As Market Gains: Here's Why

Super Micro Computer (SMCI) ended the recent trading session at $33.15, demonstrating a -1.57% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.81%. Meanwhile, the Dow gained 1.56%, and the Nasdaq, a tech-heavy index, added 2.06%.Prior to today's trading, shares of the server technology company had lost 13.82% over the past month. This has lagged the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14% in that time.The upcoming earnings release of Super Micro Computer will be of great interest to investors. The company is expected to report EPS of $0.52, down 22.39% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.34 billion, indicating a 38.58% growth compared to the corresponding quarter of the prior year.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.55 per share and a revenue of $23.79 billion, representing changes of +15.38% and +59.19%, respectively, from the prior year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Super Micro Computer. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Super Micro Computer boasts a Zacks Rank of #2 (Buy).Looking at its valuation, Super Micro Computer is holding a Forward P/E ratio of 13.23. This denotes a premium relative to the industry's average Forward P/E of 11.39.The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Super Micro Computer, Inc. (SMCI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks