Inflation declined in October and November, helping markets to breathe a sigh of relief. However, Federal rate hikes are expected to continue well into 2023. Amid such rate hikes, a recent…
Reuters poll of economists suggests a 60% chance of a U.S. recession in 2023.
Moreover, according to Refinitiv IBES data, profit growth at S&P 500 companies is expected to slow down to 4.9% in 2023 after rising 5.8% in 2022. Mass layoffs have already wreaked havoc in the United States amid the grim economic outlook.
Job cuts announced by U.S.-based employers jumped 13% to 33,843 in October 2022, the highest since February 2021. Also, the Fed’s median estimate for the unemployment rate is 4.6% for 2023 now, up from 4.4% in September.
Therefore, it could be wise to avoid fundamentally weak stocks Advanced Micro Devices, Inc. (AMD), Camber Energy, Inc. (CEI), NIO Inc. (NIO), and Peloton Interactive, Inc. (PTON) before 2023.
Advanced Micro Devices, Inc. (AMD)
AMD operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded, and Semi-Custom.
AMD’s forward EV/Sales of 4.79x is 81.3% higher than the industry average of 2.66x. Its forward Price/Sales of 4.91x is 88.6% higher than the industry average of 2.60x.
AMD’s trailing-12-month CAPEX/Sales of 1.80% is 27.3% lower than…
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