Advanced Micro Devices, Inc. (AMD), And 3 Stocks to Buy After Last Week’s Earnings

A Stock that May Have Reached the Bottom of its Decline

Advanced Micro Devices, Inc. (NYSE:AMD) closed on Friday with a loss of 1.59% after reporting earnings, but on Thursday had seen a late push higher for gains of almost 10%. During the last week the stock was flat, and this occurred despite earnings that beat expectations. Yet despite this beat, revenue declined 31% yoy and the company’s gross margins continue to show significant weakness.

The weak PC market combined with AMD’s lost share in the industry has contributed to the stock’s large 70% decline over the last year. Thankfully, all of its problems are appropriately priced into its valuation, and for the first time, AMD saw some real progress.

First off, I was highly encouraged that the company beat expectations. Second, the company raised Q2 guidance. Third, server CPU revenue rose quarter-over-quarter. Lastly, the company stated that it is regaining desktop GPU share. These facts combined with an underperforming stock trading at just 0.38 times sales, gives me reason to be bullish, and believe that AMD might just be worth the risk.

Conclusion

“When a stock trades lower following a great report, it may be your best opportunity to buy.” Taking Charge With Value Investing (McGraw-Hill, 2013)

The key to successfully trading the reactions to earnings is to first read the report and to then look at a stock’s reaction. Then, you can find inconsistencies, and profit from those inconsistencies. With these three companies, all posted solid quarters relative to their valuations, and because of that fact, I believe that each presents some level of upside from this point forward.

The article 3 Stocks to Buy After Last Week’s Earnings originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!