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Microchip Technology (MCHP) Falls More Steeply Than Broader Market: What Investors Need to Know
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The latest trading session saw Microchip Technology (MCHP - Free Report) ending at $74.39, denoting a -1.29% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.17%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, added 0.27%.
The the stock of chipmaker has fallen by 2.23% in the past month, lagging the Computer and Technology sector's loss of 2.16% and overreaching the S&P 500's loss of 3.95%.
The upcoming earnings release of Microchip Technology will be of great interest to investors. In that report, analysts expect Microchip Technology to post earnings of $1.62 per share. This would mark year-over-year growth of 10.96%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.26 billion, indicating an 8.95% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $8.69 billion. These totals would mark changes of +0.83% and +3.03%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Microchip Technology. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Microchip Technology possesses a Zacks Rank of #4 (Sell).
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 12.43. This indicates a discount in contrast to its industry's Forward P/E of 16.46.
Meanwhile, MCHP's PEG ratio is currently 1.03. 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. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 1.84.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 173, positioning it in the bottom 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Falls More Steeply Than Broader Market: What Investors Need to Know
The latest trading session saw Microchip Technology (MCHP - Free Report) ending at $74.39, denoting a -1.29% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.17%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, added 0.27%.
The the stock of chipmaker has fallen by 2.23% in the past month, lagging the Computer and Technology sector's loss of 2.16% and overreaching the S&P 500's loss of 3.95%.
The upcoming earnings release of Microchip Technology will be of great interest to investors. In that report, analysts expect Microchip Technology to post earnings of $1.62 per share. This would mark year-over-year growth of 10.96%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.26 billion, indicating an 8.95% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $8.69 billion. These totals would mark changes of +0.83% and +3.03%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Microchip Technology. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Microchip Technology possesses a Zacks Rank of #4 (Sell).
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 12.43. This indicates a discount in contrast to its industry's Forward P/E of 16.46.
Meanwhile, MCHP's PEG ratio is currently 1.03. 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. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 1.84.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 173, positioning it in the bottom 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.