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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 $74.09, marking a +0.91% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.

Prior to today's trading, shares of the chipmaker had gained 7.52% over the past month. This has outpaced the Computer and Technology sector's gain of 0.29% and the S&P 500's gain of 0.87% in that time.

Investors will be hoping for strength from MaxLinear as it approaches its next earnings release. In that report, analysts expect MaxLinear to post earnings of $0.84 per share. This would mark year-over-year growth of 115.38%. Meanwhile, our latest consensus estimate is calling for revenue of $245.08 million, up 25.86% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.68 per share and revenue of $889.6 million. These totals would mark changes of +204.55% and +85.88%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for MaxLinear. Recent revisions tend to reflect the latest near-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. 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, 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. MaxLinear currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, MaxLinear currently has a Forward P/E ratio of 27.67. Its industry sports an average Forward P/E of 25.78, so we one might conclude that MaxLinear is trading at a premium comparatively.

Meanwhile, MXL's PEG ratio is currently 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MXL's industry had an average PEG ratio of 1.63 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 17, which puts it in the top 7% 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.

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

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