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

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MaxLinear (MXL - Free Report) closed the most recent trading day at $74.09, moving +0.91% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.

Coming into today, shares of the chipmaker had gained 6.54% in the past month. In that same time, the Computer and Technology sector lost 1.01%, while the S&P 500 gained 0.39%.

MaxLinear will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.84, up 115.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $245.08 million, up 25.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.68 per share and revenue of $889.6 million, which would represent changes of +204.55% and +85.88%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MaxLinear. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. MaxLinear is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, MaxLinear is currently trading at a Forward P/E ratio of 27.42. For comparison, its industry has an average Forward P/E of 25.43, which means MaxLinear is trading at a premium to the group.

Investors should also note that MXL has a PEG ratio of 1.37 right now. 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% 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

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