NASDAQ:AMD qualifies as a high growth stock and is consolidating.

Last update: Nov 29, 2024

In this article we will dive into ADVANCED MICRO DEVICES (NASDAQ:AMD) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ADVANCED MICRO DEVICES showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

A Closer Look at Growth for NASDAQ:AMD

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:AMD has earned a 8 for growth:

The Earnings Per Share has grown by an nice 16.73% over the past year.
Measured over the past years, AMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.94% on average per year.
Looking at the last year, AMD shows a quite strong growth in Revenue. The Revenue has grown by 9.88% in the last year.
The Revenue has been growing by 28.49% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 32.66% on average over the next years. This is a very strong growth
AMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.88% yearly.

Looking at the Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:AMD has received a 6 out of 10:

An Altman-Z score of 11.13 indicates that AMD is not in any danger for bankruptcy at the moment.
AMD has a better Altman-Z score (11.13) than 81.48% of its industry peers.
AMD has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
AMD has a Debt to FCF ratio of 1.11. This is in the better half of the industry: AMD outperforms 79.63% of its industry peers.
AMD has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, AMD is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
A Current Ratio of 2.50 indicates that AMD has no problem at all paying its short term obligations.

Understanding NASDAQ:AMD's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:AMD was assigned a score of 5 for profitability:

The last Return On Invested Capital (1.69%) for AMD is well below the 3 year average (12.36%), which needs to be investigated, but indicates that AMD had better years and this may not be a problem.
The Gross Margin of AMD (48.38%) is better than 60.19% of its industry peers.
AMD's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NASDAQ:AMD?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:AMD has a 7 as its setup rating:

AMD has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 141.10. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 135.60, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of AMD contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of AMD

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.