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Microchip Technology (MCHP) Dips More Than Broader Markets: What You Should Know
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Microchip Technology (MCHP - Free Report) closed at $75.72 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.
Heading into today, shares of the chipmaker had gained 9.12% over the past month, lagging the Computer and Technology sector's gain of 11.67% and outpacing the S&P 500's gain of 4.64% in that time.
Microchip Technology will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2023. In that report, analysts expect Microchip Technology to post earnings of $1.55 per share. This would mark year-over-year growth of 29.17%. Meanwhile, our latest consensus estimate is calling for revenue of $2.15 billion, up 22.45% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.94 per share and revenue of $8.33 billion, which would represent changes of +28.85% and +22.13%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Microchip Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Microchip Technology currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 12.85. Its industry sports an average Forward P/E of 16.56, so we one might conclude that Microchip Technology is trading at a discount comparatively.
Investors should also note that MCHP has a PEG ratio of 0.79 right now. 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. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.8 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 219, which puts it in the bottom 14% 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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Microchip Technology (MCHP) Dips More Than Broader Markets: What You Should Know
Microchip Technology (MCHP - Free Report) closed at $75.72 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.
Heading into today, shares of the chipmaker had gained 9.12% over the past month, lagging the Computer and Technology sector's gain of 11.67% and outpacing the S&P 500's gain of 4.64% in that time.
Microchip Technology will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2023. In that report, analysts expect Microchip Technology to post earnings of $1.55 per share. This would mark year-over-year growth of 29.17%. Meanwhile, our latest consensus estimate is calling for revenue of $2.15 billion, up 22.45% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.94 per share and revenue of $8.33 billion, which would represent changes of +28.85% and +22.13%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Microchip Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Microchip Technology currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 12.85. Its industry sports an average Forward P/E of 16.56, so we one might conclude that Microchip Technology is trading at a discount comparatively.
Investors should also note that MCHP has a PEG ratio of 0.79 right now. 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. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.8 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 219, which puts it in the bottom 14% 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.