Super Micro Computer (SMCI) ended the recent trading session at $30.05, demonstrating a -1.41% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.

The the stock of server technology company has fallen by 27.1% in the past month, lagging the Computer and Technology sector's gain of 1.86% and the S&P 500's loss of 2.36%.

The investment community will be paying close attention to the earnings performance of Super Micro Computer in its upcoming release. The company is predicted to post an EPS of $0.75, indicating a 33.93% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.8 billion, showing a 58.32% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.16 per share and revenue of $24.05 billion, which would represent changes of +42.99% and +60.95%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Super Micro Computer. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Super Micro Computer is currently sporting a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Super Micro Computer is presently trading at a Forward P/E ratio of 9.66. For comparison, its industry has an average Forward P/E of 13.23, which means Super Micro Computer is trading at a discount to the group.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 9% of all 250+ industries.

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