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

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In the latest trading session, Himax Tech (HIMX - Free Report) closed at $12.41, marking a +0.08% move from the previous day. This move outpaced the S&P 500's daily loss of 0.53%.

Coming into today, shares of the fabless semiconductor company had lost 3.13% in the past month. In that same time, the Computer and Technology sector gained 8.44%, while the S&P 500 gained 5.72%.

HIMX will be looking to display strength as it nears its next earnings release, which is expected to be May 6, 2021. The company is expected to report EPS of $0.38, up 1800% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $302.75 million, up 64.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.20 per share and revenue of $1.23 billion, which would represent changes of +300% and +38.58%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for HIMX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate has moved 3% higher. HIMX is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, HIMX is holding a Forward P/E ratio of 10.33. Its industry sports an average Forward P/E of 20.82, so we one might conclude that HIMX is trading at a discount comparatively.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 HIMX in the coming trading sessions, be sure to utilize Zacks.com.


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