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Microchip Technology (MCHP) Stock Moves -1.16%: What You Should Know

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Microchip Technology (MCHP - Free Report) closed at $69.04 in the latest trading session, marking a -1.16% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.3%. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.45%.

Prior to today's trading, shares of the chipmaker had lost 6.78% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.81% and lagged the S&P 500's loss of 5.33% in that time.

Investors will be hoping for strength from Microchip Technology as it approaches its next earnings release. In that report, analysts expect Microchip Technology to post earnings of $1.25 per share. This would mark year-over-year growth of 34.41%. Meanwhile, our latest consensus estimate is calling for revenue of $1.82 billion, up 24.06% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.51 per share and revenue of $6.8 billion, which would represent changes of +36.67% and +24.98%, respectively, from the prior year.

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.

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. Microchip Technology currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 15.48. This valuation marks a discount compared to its industry's average Forward P/E of 17.48.

Also, we should mention that MCHP has a PEG ratio of 0.76. 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. MCHP's industry had an average PEG ratio of 1.06 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 21, which puts it in the top 9% 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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