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Here's Why QuickLogic (QUIK) Gained But Lagged the Market Today

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QuickLogic (QUIK - Free Report) closed the most recent trading day at $11.83, moving +0.34% from the previous trading session. This change lagged the S&P 500's 0.82% gain on the day. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw an increase of 0.95%.

Shares of the maker of chips for mobile and portable electronics manufacturers have depreciated by 17.73% over the course of the past month, underperforming the Computer and Technology sector's gain of 10.9% and the S&P 500's gain of 5.59%.

The investment community will be paying close attention to the earnings performance of QuickLogic in its upcoming release. The company is predicted to post an EPS of $0.14, indicating a 450% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.4 million, indicating an 81.37% upward movement from the same quarter last year.

It is also important to note the recent changes to analyst estimates for QuickLogic. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, QuickLogic possesses a Zacks Rank of #3 (Hold).

With respect to valuation, QuickLogic is currently being traded at a Forward P/E ratio of 32.75. This valuation marks a premium compared to its industry's average Forward P/E of 27.5.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 172, placing it within the bottom 32% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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