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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 $39.39 in the latest trading session, marking a +1.13% move from the prior day. This change lagged the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 7.23%.

Heading into today, shares of the company had gained 4.31% over the past month, outpacing the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.08% in that time.

Investors will be hoping for strength from Infineon Technologies AG as it approaches its next earnings release. In that report, analysts expect Infineon Technologies AG to post earnings of $0.72 per share. This would mark year-over-year growth of 38.46%.

Investors should also note any recent changes to analyst estimates for Infineon Technologies AG. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Infineon Technologies AG is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Infineon Technologies AG has a Forward P/E ratio of 13.29 right now. For comparison, its industry has an average Forward P/E of 26.64, which means Infineon Technologies AG is trading at a discount to the group.

Investors should also note that IFNNY has a PEG ratio of 0.81 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 Electronics - Semiconductors industry currently had an average PEG ratio of 5.1 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% 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.

To follow IFNNY in the coming trading sessions, be sure to utilize Zacks.com.


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