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Himax Tech (HIMX) Flat As Market Gains: What You Should Know

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In the latest trading session, Himax Tech (HIMX - Free Report) closed at $3.87, marking no change from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq added 0.08%.

Coming into today, shares of the fabless semiconductor company had gained 2.38% in the past month. In that same time, the Computer and Technology sector gained 7.64%, while the S&P 500 gained 5.93%.

Wall Street will be looking for positivity from HIMX as it approaches its next earnings report date. This is expected to be February 19, 2019. On that day, HIMX is projected to report earnings of $0.03 per share, which would represent a year-over-year decline of 78.57%. Meanwhile, our latest consensus estimate is calling for revenue of $190.90 million, up 5.42% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for HIMX. Recent revisions tend to reflect the latest near-term business trends. 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.

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. HIMX currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that HIMX has a Forward P/E ratio of 48.38 right now. For comparison, its industry has an average Forward P/E of 16.18, which means HIMX is trading at a premium to the group.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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