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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 $139.91, marking a +0.08% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the chipmaker had gained 10.73% over the past month, outpacing the Computer and Technology sector's gain of 4.87% and the S&P 500's gain of 3.5% in that time.
MCHP will be looking to display strength as it nears its next earnings release. On that day, MCHP is projected to report earnings of $1.57 per share, which would represent year-over-year growth of 18.94%. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, up 4.38% from the year-ago period.
MCHP's full-year Zacks Consensus Estimates are calling for earnings of $6.25 per share and revenue of $5.35 billion. These results would represent year-over-year changes of +11.21% and +1.37%, respectively.
Any recent changes to analyst estimates for MCHP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MCHP is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MCHP is holding a Forward P/E ratio of 22.37. This represents a discount compared to its industry's average Forward P/E of 33.48.
Also, we should mention that MCHP has a PEG ratio of 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.5 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.
To follow MCHP in the coming trading sessions, be sure to utilize Zacks.com.
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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 $139.91, marking a +0.08% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the chipmaker had gained 10.73% over the past month, outpacing the Computer and Technology sector's gain of 4.87% and the S&P 500's gain of 3.5% in that time.
MCHP will be looking to display strength as it nears its next earnings release. On that day, MCHP is projected to report earnings of $1.57 per share, which would represent year-over-year growth of 18.94%. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, up 4.38% from the year-ago period.
MCHP's full-year Zacks Consensus Estimates are calling for earnings of $6.25 per share and revenue of $5.35 billion. These results would represent year-over-year changes of +11.21% and +1.37%, respectively.
Any recent changes to analyst estimates for MCHP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MCHP is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MCHP is holding a Forward P/E ratio of 22.37. This represents a discount compared to its industry's average Forward P/E of 33.48.
Also, we should mention that MCHP has a PEG ratio of 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.5 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.
To follow MCHP in the coming trading sessions, be sure to utilize Zacks.com.