Earnings Growth & Price Strength Make Advanced Micro Devices (AMD) a Stock to Watch

Core Insights - Zacks offers various investment opportunities and tools aimed at long-term success in the stock market [1] - The Zacks Focus List is a curated portfolio of 50 stocks expected to outperform the market over the next 12 months [3][4] Performance Metrics - In 2020, the Focus List achieved an annualized return of 13.85%, compared to the S&P 500's 9.38% [5] - Cumulatively, from February 1, 1996, to March 31, 2021, the Focus List returned 2,519.23%, while the S&P 500 returned 854.95% [5] Selection Methodology - Stocks for the Focus List are selected based on earnings estimate revisions, which reflect analysts' expectations of growth and profitability [6] - The Zacks Rank, a proprietary stock-rating model, utilizes earnings estimate revisions to facilitate portfolio building [8] Zacks Rank Factors - The Zacks Rank is based on four main factors: Agreement, Magnitude, Upside, and Surprise, which are recalculated nightly [9] - Stocks in the Focus List are primarily from 1 (Strong Buy) or 2 (Buy) ranked companies, indicating a positive earnings consensus among analysts [9] Company Spotlight: Advanced Micro Devices (AMD) - AMD generated revenues of $25.79 billion in 2024, with its revenue segments being Data Center (48.7%), Client (27.4%), Gaming (10.1%), and Embedded (13.8%) [11] - Since being added to the Focus List at $117.17 per share on May 19, 2025, AMD's shares have increased by 84.71% to $216.42 [12] - Analysts expect AMD's earnings to grow by 18.7% for the current fiscal year, with a Zacks Consensus Estimate of $3.93 [12]