AMD Stock: Is It Undervalued? Look at the P/E Ratio: Advanced Micro Devices, Inc , Textron Inc

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Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were trading lower by -1.47 percent ($-0.16) at $10.73 a piece in Sunday’s session. It had closed the previous session at $10.89. AMD trades with a P/S ratio of 2.08. This is lower than the both industry’s 28.8 and the wider sector’s 2.67. A low price-to-sales ratio, typically less than 1.0, is considered a good value. Also, it has an estimated price-earnings (P/E) multiple of 30.48. Shares of AMD have downtrended -18.65% in the past three months. Advanced Micro Devices, Inc. (AMD) has a market cap of $10.3 billion and over the last 12 months, Advanced Micro Devices, Inc. (NASDAQ:AMD) has gone stronger by 27.89%. During the last 52 weeks, the (NASDAQ:AMD) price has been as high as $15.65 and as low as $8.26. Advanced Micro Devices, Inc. earnings have declined with an annualized rate of -23.7% over the last 5 years.

Advanced Micro Devices, Inc. (Mean Target Price: $14.34)

The average 1-year price target for Advanced Micro Devices, Inc. (AMD) — averaging the work of different analysts — reveals a mean PT of $14.34/share. That’s a potential 33.64 increase relative to where Advanced Micro Devices, Inc. (NASDAQ:AMD) has been trading recently. The current price is seen ranging between $10.53 and $10.97. There are brokerage firms with lower targets than the average, including one setting a price target of $5. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $22.

Advanced Micro Devices, Inc. (AMD) Consensus Recommendation

The collective rating of 2.7 for Advanced Micro Devices, Inc. (NASDAQ:AMD) also leans strongly towards the neutral end of the spectrum. Of the 31 analysts surveyed by Reuters that track AMD 15 of them rate its stock a hold. The other 16, though not evenly; between analysts who think you should buy Advanced Micro Devices, Inc. versus those who think you should sell it. A 11 analysts rate it as either a buy or a strong buy, while5 believe that investors should either steer clear of AMD or, if they already own its stock, sell it.

Is Textron Inc. (NYSE:TXT) Cheap From Peers?

Textron Inc. (TXT) knifed -1.47 percent lower and now trades for $54.89. TXT comes in with a P/S ratio of 1.04 that’s greater than 1, potentially implying that it could be expensive relative to the overall sector (9.79) and its peers (6.44). Also, it has an estimated price-earnings (P/E) multiple of 19.11 and a trailing 12-month price-earnings (P/E) multiple of 23.69. During the last 52 weeks, the price has been as high as $55.83 and as low as $43.66. Textron Inc. (NYSE:TXT) earnings have risen with a quarterly rate of 4.1% over the last 5 years. Shares of TXT have increased 11.5% in the past three monthswhile the S&P 500 has gained 4.51% in that time.

Textron Inc. (Price Objective: $56.47)

Textron Inc. (NYSE:TXT) has a market cap of $14.53 billion and over the last 12 months, TXT has risen by 14.64%. The average 1-year price target for (TXT) reveals an average price target of $56.47 per share. That’s a potential 2.88 gain from where (NYSE:TXT) has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $45. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $65.

Analyst Thoughts About Textron Inc. (NYSE:TXT)

The consensus recommendation — averaging the work of 13 analysts — of 2.3 for Textron Inc. (TXT) points to moderate case. Of the analysts surveyed by Reuters that track Textron Inc. 3 of them rate its stock a hold. The other 10 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 8 analysts rate it as either a buy or a strong buy, while 2 believe that investors should either steer clear of (NYSE:TXT) or, if they already own its stock, sell it.

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