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Microchip Technology (MCHP) Beats Stock Market Upswing: What Investors Need to Know
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Microchip Technology (MCHP - Free Report) closed the latest trading day at $78.95, indicating a +1.92% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 1.06%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 1.2%.
The the stock of chipmaker has fallen by 0.22% in the past month, leading the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Market participants will be closely following the financial results of Microchip Technology in its upcoming release. The company is forecasted to report an EPS of $1.62, showcasing a 10.96% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.26 billion, reflecting an 8.95% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.07 per share and a revenue of $8.69 billion, signifying shifts of +0.83% and +3.03%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microchip Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microchip Technology is currently sporting a Zacks Rank of #4 (Sell).
Looking at valuation, Microchip Technology is presently trading at a Forward P/E ratio of 12.77. Its industry sports an average Forward P/E of 17.13, so one might conclude that Microchip Technology is trading at a discount comparatively.
Meanwhile, MCHP's PEG ratio is currently 1.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 1.99.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 160, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCHP in the coming trading sessions, be sure to utilize Zacks.com.
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Microchip Technology (MCHP) Beats Stock Market Upswing: What Investors Need to Know
Microchip Technology (MCHP - Free Report) closed the latest trading day at $78.95, indicating a +1.92% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 1.06%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 1.2%.
The the stock of chipmaker has fallen by 0.22% in the past month, leading the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Market participants will be closely following the financial results of Microchip Technology in its upcoming release. The company is forecasted to report an EPS of $1.62, showcasing a 10.96% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.26 billion, reflecting an 8.95% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.07 per share and a revenue of $8.69 billion, signifying shifts of +0.83% and +3.03%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microchip Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microchip Technology is currently sporting a Zacks Rank of #4 (Sell).
Looking at valuation, Microchip Technology is presently trading at a Forward P/E ratio of 12.77. Its industry sports an average Forward P/E of 17.13, so one might conclude that Microchip Technology is trading at a discount comparatively.
Meanwhile, MCHP's PEG ratio is currently 1.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 1.99.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 160, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCHP in the coming trading sessions, be sure to utilize Zacks.com.