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Why the Market Dipped But Microchip Technology (MCHP) Gained Today
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Microchip Technology (MCHP - Free Report) closed the most recent trading day at $72.72, moving +1.87% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.18%. Elsewhere, the Dow saw a downswing of 0.76%, while the tech-heavy Nasdaq depreciated by 1.76%.
Coming into today, shares of the chipmaker had lost 6.69% in the past month. In that same time, the Computer and Technology sector lost 2.96%, while the S&P 500 lost 3.35%.
Market participants will be closely following the financial results of Microchip Technology in its upcoming release. The company plans to announce its earnings on November 2, 2023. The company is predicted to post an EPS of $1.62, indicating a 10.96% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.26 billion, up 8.95% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.07 per share and a revenue of $8.69 billion, indicating changes of +0.83% and +3.03%, respectively, from the former 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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Microchip Technology is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Microchip Technology is currently trading at a Forward P/E ratio of 11.77. This indicates a discount in contrast to its industry's Forward P/E of 15.62.
One should further note that MCHP currently holds a PEG ratio of 0.98. 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. MCHP's industry had an average PEG ratio of 1.76 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 40% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why the Market Dipped But Microchip Technology (MCHP) Gained Today
Microchip Technology (MCHP - Free Report) closed the most recent trading day at $72.72, moving +1.87% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.18%. Elsewhere, the Dow saw a downswing of 0.76%, while the tech-heavy Nasdaq depreciated by 1.76%.
Coming into today, shares of the chipmaker had lost 6.69% in the past month. In that same time, the Computer and Technology sector lost 2.96%, while the S&P 500 lost 3.35%.
Market participants will be closely following the financial results of Microchip Technology in its upcoming release. The company plans to announce its earnings on November 2, 2023. The company is predicted to post an EPS of $1.62, indicating a 10.96% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.26 billion, up 8.95% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.07 per share and a revenue of $8.69 billion, indicating changes of +0.83% and +3.03%, respectively, from the former 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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Microchip Technology is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Microchip Technology is currently trading at a Forward P/E ratio of 11.77. This indicates a discount in contrast to its industry's Forward P/E of 15.62.
One should further note that MCHP currently holds a PEG ratio of 0.98. 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. MCHP's industry had an average PEG ratio of 1.76 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 40% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.