June 18, 2024


Digitally first class

Amkor Technology (AMKR) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Amkor Technology (AMKR) closed at $23.92, marking a -0.21% move from the previous day. This change lagged the S&P 500’s daily gain of 0.7%. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq gained 1.23%.

Heading into today, shares of the chip packaging and test services provider had gained 4.67% over the past month, outpacing the Computer and Technology sector’s loss of 6.07% and the S&P 500’s gain of 0.18% in that time.

AMKR will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMKR to post earnings of $0.38 per share. This would mark year-over-year growth of 46.15%. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 14.55% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.80 per share and revenue of $5.65 billion. These totals would mark changes of +28.57% and +11.78%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AMKR. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMKR is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, AMKR is currently trading at a Forward P/E ratio of 13.32. Its industry sports an average Forward P/E of 20.67, so we one might conclude that AMKR is trading at a discount comparatively.

The Electronics – Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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
Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research