NASDAQ:AMD, a strong growth stock, setting up for a breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ADVANCED MICRO DEVICES (NASDAQ:AMD) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted ADVANCED MICRO DEVICES showing up in our growth with base formation screen, so it may be worth spending some more time on it.

How We Gauge Growth for NASDAQ:AMD

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:AMD has received a 9 out of 10:

• AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.73%, which is quite good.
• 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.
• AMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.88%.
• AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.49% yearly.
• Based on estimates for the next years, AMD will show a very strong growth in Earnings Per Share. The EPS will grow by 34.60% on average per year.
• AMD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.06% yearly.

Exploring NASDAQ:AMD's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:AMD, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 9.93 indicates that AMD is not in any danger for bankruptcy at the moment.
• AMD's Altman-Z score of 9.93 is fine compared to the rest of the industry. AMD outperforms 78.50% 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.
• Looking at the Debt to FCF ratio, with a value of 1.11, AMD is in the better half of the industry, outperforming 79.44% of the companies in the same industry.
• AMD has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 2.50 indicates that AMD has no problem at all paying its short term obligations.

How do we evaluate the Profitability for NASDAQ:AMD?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:AMD, the assigned 5 is a significant indicator of profitability:

• The 3 year average ROIC (12.36%) for AMD is well above the current ROIC(1.69%). The reason for the recent decline needs to be investigated.
• In the last couple of years the Gross Margin of AMD has grown nicely.

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 level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:AMD has a 7 as its setup rating, indicating its current consolidation status.

AMD has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 126.29. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 119.21, 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.

Check the latest full technical report of AMD for a complete technical analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.