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Microchip Technology (MCHP) Gains As Market Dips: What You Should Know
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In the latest trading session, Microchip Technology (MCHP - Free Report) closed at $82.93, marking a +1.22% move from the previous day. This move outpaced the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the chipmaker had lost 5.97% over the past month, lagging the Computer and Technology sector's loss of 5.82% and the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from Microchip Technology as it approaches its next earnings release. On that day, Microchip Technology is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 44.44%. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, up 29.11% from the year-ago period.
MCHP's full-year Zacks Consensus Estimates are calling for earnings of $4.42 per share and revenue of $6.73 billion. These results would represent year-over-year changes of +33.94% and +23.77%, respectively.
It is also important to note the recent changes to analyst estimates for Microchip Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microchip Technology is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Microchip Technology's current valuation metrics, including its Forward P/E ratio of 18.56. For comparison, its industry has an average Forward P/E of 21.57, which means Microchip Technology is trading at a discount to the group.
Meanwhile, MCHP's PEG ratio is currently 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Microchip Technology (MCHP) Gains As Market Dips: What You Should Know
In the latest trading session, Microchip Technology (MCHP - Free Report) closed at $82.93, marking a +1.22% move from the previous day. This move outpaced the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the chipmaker had lost 5.97% over the past month, lagging the Computer and Technology sector's loss of 5.82% and the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from Microchip Technology as it approaches its next earnings release. On that day, Microchip Technology is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 44.44%. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, up 29.11% from the year-ago period.
MCHP's full-year Zacks Consensus Estimates are calling for earnings of $4.42 per share and revenue of $6.73 billion. These results would represent year-over-year changes of +33.94% and +23.77%, respectively.
It is also important to note the recent changes to analyst estimates for Microchip Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microchip Technology is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Microchip Technology's current valuation metrics, including its Forward P/E ratio of 18.56. For comparison, its industry has an average Forward P/E of 21.57, which means Microchip Technology is trading at a discount to the group.
Meanwhile, MCHP's PEG ratio is currently 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.