We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microchip Technology (MCHP) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Microchip Technology (MCHP - Free Report) closed the most recent trading day at $72.22, moving +1.66% from the previous trading session. This change lagged the S&P 500's 2.44% gain on the day. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 0.28%.
Coming into today, shares of the chipmaker had lost 18.42% in the past month. In that same time, the Computer and Technology sector lost 16.14%, while the S&P 500 lost 9.65%.
Microchip Technology will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. On that day, Microchip Technology is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 44.44%. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, up 29.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.42 per share and revenue of $6.73 billion. These totals would mark changes of +33.94% and +23.77%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Microchip Technology. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Microchip Technology is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Microchip Technology is currently trading at a Forward P/E ratio of 16.09. For comparison, its industry has an average Forward P/E of 18.63, which means Microchip Technology is trading at a discount to the group.
Investors should also note that MCHP has a PEG ratio of 0.84 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microchip Technology (MCHP) Gains But Lags Market: What You Should Know
Microchip Technology (MCHP - Free Report) closed the most recent trading day at $72.22, moving +1.66% from the previous trading session. This change lagged the S&P 500's 2.44% gain on the day. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 0.28%.
Coming into today, shares of the chipmaker had lost 18.42% in the past month. In that same time, the Computer and Technology sector lost 16.14%, while the S&P 500 lost 9.65%.
Microchip Technology will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. On that day, Microchip Technology is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 44.44%. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, up 29.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.42 per share and revenue of $6.73 billion. These totals would mark changes of +33.94% and +23.77%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Microchip Technology. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Microchip Technology is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Microchip Technology is currently trading at a Forward P/E ratio of 16.09. For comparison, its industry has an average Forward P/E of 18.63, which means Microchip Technology is trading at a discount to the group.
Investors should also note that MCHP has a PEG ratio of 0.84 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.