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Infineon Technologies AG (IFNNY) Stock Sinks As Market Gains: What You Should Know

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Infineon Technologies AG (IFNNY - Free Report) closed at $39.55 in the latest trading session, marking a -0.33% move from the prior day. This change lagged the S&P 500's 0.12% gain on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.

Coming into today, shares of the company had gained 9.19% in the past month. In that same time, the Computer and Technology sector gained 9.32%, while the S&P 500 gained 3.98%.

Investors will be hoping for strength from Infineon Technologies AG as it approaches its next earnings release. On that day, Infineon Technologies AG is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 38.46%.

Any recent changes to analyst estimates for Infineon Technologies AG should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Infineon Technologies AG is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Infineon Technologies AG is holding a Forward P/E ratio of 13.54. This represents a discount compared to its industry's average Forward P/E of 20.4.

Investors should also note that IFNNY has a PEG ratio of 0.83 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 4.68 based on yesterday's closing prices.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.

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