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MaxLinear (MXL) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, MaxLinear (MXL - Free Report) closed at $60.20, marking a +1.96% move from the previous day. This move outpaced the S&P 500's daily gain of 1.17%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 0.18%.

Prior to today's trading, shares of the chipmaker had lost 4.14% over the past month. This has lagged the Computer and Technology sector's loss of 1.7% and the S&P 500's gain of 0.88% in that time.

Wall Street will be looking for positivity from MaxLinear as it approaches its next earnings report date. The company is expected to report EPS of $0.91, up 65.45% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $260.08 million, up 24.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.71 per share and revenue of $1.07 billion, which would represent changes of +37.92% and +19.42%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MaxLinear. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MaxLinear is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that MaxLinear has a Forward P/E ratio of 15.9 right now. This valuation marks a discount compared to its industry's average Forward P/E of 18.4.

Meanwhile, MXL's PEG ratio is currently 0.8. 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. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 1.1 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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