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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 $80.54, moving +1.27% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.
Heading into today, shares of the chipmaker had lost 1.46% over the past month, lagging the Computer and Technology sector's gain of 7.45% and the S&P 500's gain of 5.67% in that time.
Microchip Technology will be looking to display strength as it nears its next earnings release. On that day, Microchip Technology is projected to report earnings of $1.62 per share, which would represent year-over-year growth of 20%. Our most recent consensus estimate is calling for quarterly revenue of $2.22 billion, up 20.42% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Microchip Technology. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microchip Technology is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Microchip Technology's current valuation metrics, including its Forward P/E ratio of 12.91. For comparison, its industry has an average Forward P/E of 17.78, which means Microchip Technology is trading at a discount to the group.
Investors should also note that MCHP has a PEG ratio of 0.76 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.
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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 $80.54, moving +1.27% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.
Heading into today, shares of the chipmaker had lost 1.46% over the past month, lagging the Computer and Technology sector's gain of 7.45% and the S&P 500's gain of 5.67% in that time.
Microchip Technology will be looking to display strength as it nears its next earnings release. On that day, Microchip Technology is projected to report earnings of $1.62 per share, which would represent year-over-year growth of 20%. Our most recent consensus estimate is calling for quarterly revenue of $2.22 billion, up 20.42% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Microchip Technology. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microchip Technology is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Microchip Technology's current valuation metrics, including its Forward P/E ratio of 12.91. For comparison, its industry has an average Forward P/E of 17.78, which means Microchip Technology is trading at a discount to the group.
Investors should also note that MCHP has a PEG ratio of 0.76 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.