Super Micro Computer (SMCI) ended the recent trading session at $35.81, demonstrating a +2.05% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.28% for the day. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.27%.
The server technology company's stock has dropped by 14.46% in the past month, falling short of the Computer and Technology sector's loss of 4.89% and the S&P 500's loss of 0.2%.
Investors will be eagerly watching for the performance of Super Micro Computer in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 3, 2026. The company is predicted to post an EPS of $1.24, indicating a 254.29% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.77 billion, up 214.34% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.74 per share and revenue of $67.68 billion. These totals would mark changes of +30.58% and +73.26%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Super Micro Computer. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.8% higher. Currently, Super Micro Computer is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Super Micro Computer has a Forward P/E ratio of 7.41 right now. This signifies a discount in comparison to the average Forward P/E of 12.75 for its industry.
It's also important to note that SMCI currently trades at a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer- Storage Devices industry was having an average PEG ratio of 1.35.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
