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Microchip Technology (MCHP) Outpaces Stock Market Gains: What You Should Know
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Microchip Technology (MCHP - Free Report) closed the most recent trading day at $88.24, moving +0.24% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Heading into today, shares of the chipmaker had gained 5.51% over the past month, outpacing the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from Microchip Technology as it approaches its next earnings report date. The company is expected to report EPS of $1.17, up 44.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.75 billion, up 29.11% from the year-ago period.
MCHP's full-year Zacks Consensus Estimates are calling for earnings of $4.42 per share and revenue of $6.73 billion. These results would represent year-over-year changes of +33.94% and +23.77%, respectively.
Any recent changes to analyst estimates for Microchip Technology should also be noted by investors. These revisions help to show the ever-changing nature of 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Microchip Technology is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Microchip Technology's current valuation metrics, including its Forward P/E ratio of 19.94. For comparison, its industry has an average Forward P/E of 26.17, which means Microchip Technology is trading at a discount to the group.
Investors should also note that MCHP has a PEG ratio of 1.04 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Microchip Technology (MCHP) Outpaces Stock Market Gains: What You Should Know
Microchip Technology (MCHP - Free Report) closed the most recent trading day at $88.24, moving +0.24% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Heading into today, shares of the chipmaker had gained 5.51% over the past month, outpacing the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from Microchip Technology as it approaches its next earnings report date. The company is expected to report EPS of $1.17, up 44.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.75 billion, up 29.11% from the year-ago period.
MCHP's full-year Zacks Consensus Estimates are calling for earnings of $4.42 per share and revenue of $6.73 billion. These results would represent year-over-year changes of +33.94% and +23.77%, respectively.
Any recent changes to analyst estimates for Microchip Technology should also be noted by investors. These revisions help to show the ever-changing nature of 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Microchip Technology is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Microchip Technology's current valuation metrics, including its Forward P/E ratio of 19.94. For comparison, its industry has an average Forward P/E of 26.17, which means Microchip Technology is trading at a discount to the group.
Investors should also note that MCHP has a PEG ratio of 1.04 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.