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Infineon Technologies AG (IFNNY) Gains But Lags Market: What You Should Know

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Infineon Technologies AG (IFNNY - Free Report) closed at $42.37 in the latest trading session, marking a +0.38% move from the prior day. This move lagged the S&P 500's daily gain of 1.22%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 4.63%.

Heading into today, shares of the company had gained 12.02% over the past month, lagging the Computer and Technology sector's gain of 12.34% and outpacing the S&P 500's gain of 6.22% in that time.

Wall Street will be looking for positivity from Infineon Technologies AG as it approaches its next earnings report date. 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%.

Investors might also notice recent changes to analyst estimates for Infineon Technologies AG. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Infineon Technologies AG is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Infineon Technologies AG's current valuation metrics, including its Forward P/E ratio of 14.41. Its industry sports an average Forward P/E of 25.7, so we one might conclude that Infineon Technologies AG is trading at a discount comparatively.

We can also see that IFNNY currently has a PEG ratio of 0.88. 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 5.13 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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