Amkor Technology, Inc. (AMKR) Is a Trending Stock: Facts to Know Before Betting on It

Core Viewpoint - Amkor Technology (AMKR) has shown significant stock performance, returning +20.2% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change, indicating strong investor interest and potential for future growth [1] Earnings Estimate Revisions - The current quarter's earnings estimate for Amkor Technology is $0.23 per share, reflecting a year-over-year decline of -11.5%, with the Zacks Consensus Estimate remaining unchanged over the last 30 days [2] - For the current fiscal year, the consensus earnings estimate is $1.78, indicating a year-over-year increase of +21.9%, with no changes in the estimate over the past month [3] - The next fiscal year's consensus earnings estimate is $2.47, suggesting a year-over-year increase of +38.8%, also remaining unchanged recently [3] Revenue Growth Potential - The consensus sales estimate for the current quarter is $1.45 billion, showing a slight year-over-year decline of -0.4%. For the current and next fiscal years, sales estimates are $6.56 billion and $7.3 billion, indicating growth of +0.9% and +11.2%, respectively [5] Last Reported Results and Surprise History - In the last reported quarter, Amkor Technology generated revenues of $1.37 billion, a year-over-year decrease of -7.2%, while EPS was $0.24, up from $0.18 a year ago [6] - The reported revenues exceeded the Zacks Consensus Estimate of $1.35 billion by +1%, and the EPS surprise was +140% [6] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates twice during this period [6] Valuation - Amkor Technology is graded B on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers, suggesting potential undervaluation [9] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [7][8] Conclusion - The Zacks Rank 1 for Amkor Technology suggests it may outperform the broader market in the near term, supported by strong earnings estimate revisions and valuation metrics [10]