Advanced Micro Devices (AMD) Is Today's Strong On High Volume Stock

Trade-Ideas LLC identified Advanced Micro Devices (AMD) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Advanced Micro Devices

(

AMD

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Advanced Micro Devices as such a stock due to the following factors:

  • AMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $142.0 million.
  • AMD has traded 18.5 million shares today.
  • AMD is trading at 9.86 times the normal volume for the stock at this time of day.
  • AMD is trading at a new high 13.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on AMD:

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company's products primarily include x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs), and semi-custom System-on-Chip (SoC) products. Currently there are 6 analysts that rate Advanced Micro Devices a buy, 4 analysts rate it a sell, and 7 rate it a hold.

The average volume for Advanced Micro Devices has been 24.1 million shares per day over the past 30 days. Advanced Micro Devices has a market cap of $4.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.14 and a short float of 12.9% with 3.17 days to cover. Shares are up 81.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Advanced Micro Devices as a

sell

. The area that we feel has been the company's primary weakness has been its declining revenues.

Highlights from the ratings report include:

  • AMD, with its decline in revenue, underperformed when compared the industry average of 5.9%. Since the same quarter one year prior, revenues fell by 19.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ADVANCED MICRO DEVICES has improved earnings per share by 39.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ADVANCED MICRO DEVICES reported poor results of -$0.84 versus -$0.53 in the prior year. This year, the market expects an improvement in earnings (-$0.27 versus -$0.84).
  • 36.30% is the gross profit margin for ADVANCED MICRO DEVICES which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -13.10% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 75.72% to -$42.00 million when compared to the same quarter last year. In addition, ADVANCED MICRO DEVICES has also vastly surpassed the industry average cash flow growth rate of 2.87%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 39.4% when compared to the same quarter one year prior, rising from -$180.00 million to -$109.00 million.

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