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MaxLinear (MXL) Dips More Than Broader Markets: What You Should Know

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MaxLinear (MXL - Free Report) closed the most recent trading day at $74.77, moving -1.93% from the previous trading session. This move lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.2%.

Heading into today, shares of the chipmaker had gained 11.06% over the past month, outpacing the Computer and Technology sector's gain of 0.63% and the S&P 500's gain of 3.11% in that time.

Wall Street will be looking for positivity from MaxLinear as it approaches its next earnings report date. The company is expected to report EPS of $0.84, up 115.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.

Any recent changes to analyst estimates for MaxLinear should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MaxLinear is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note MaxLinear's current valuation metrics, including its Forward P/E ratio of 28.47. This represents a premium compared to its industry's average Forward P/E of 26.57.

Investors should also note that MXL has a PEG ratio of 1.42 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. MXL's industry had an average PEG ratio of 1.66 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 27, which puts it in the top 11% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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