Super Micro Computer (SMCI) closed the most recent trading day at $416.56, moving -0.76% from the previous trading session. The stock's change was smaller than the S&P 500's daily gain of 0.42%. Meanwhile, the Dow was up 0.04% and the technology-focused Nasdaq was up 0.38%.

The server technology company's shares have fallen 4.1% over the past month, underperforming the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06%.

Investors will be paying close attention to Super Micro Computer's performance in its upcoming earnings release. The company's earnings per share (EPS) are expected to be $7.45, up 117.2% from the year-ago quarter. At the same time, our most recent consensus estimate is calling for revenue of $6.52 billion, up 207.52% from the prior-year quarter.

For the full-year period, the Zacks Consensus Estimates are projecting earnings of $33.50 per share and revenue of $28.01 billion, representing year-over-year shifts of +51.65% and +87.45%, respectively corresponds.

Investors should also pay attention to any recent changes to analyst estimates for Super Micro Computer. These revisions help demonstrate the ever-changing nature of near-term business trends. As a result, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term share price performance. To capitalize on this, we have developed the Zacks Rank, a unique model which takes these estimate changes into account and provides a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an admirable track record of superior performance, independently audited, with #1 stocks generating an average annual return of +25% generated. Over the past 30 days, the Zacks Consensus EPS estimate has remained unchanged. Super Micro Computer currently holds a Zacks Rank #3 (Hold).

Investors should also note Super Micro Computer's current valuation metrics, including its Forward P/E ratio of 12.53. Its industry has an average Forward P/E of 13.56, so one might conclude that Super Micro Computer is trading at a discount comparatively.

The computer storage devices industry is part of the Computer and Technology sector. Currently sporting a Zacks Industry Rank of 100, this industry is ranked in the top 40% of 250+ industries.

The strength of our individual industry groups is measured using the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within those groups. Our research shows that the top rated 50% of industries outperform the bottom half by a factor of 2 to 1.

The story continues

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