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Microchip Technology (MCHP) Gains As Market Dips: What You Should Know
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The most recent trading session ended with Microchip Technology (MCHP - Free Report) standing at $89.74, reflecting a +0.03% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.2%. Elsewhere, the Dow saw a downswing of 0.6%, while the tech-heavy Nasdaq appreciated by 0.11%.
The chipmaker's stock has climbed by 3.11% in the past month, exceeding the Computer and Technology sector's gain of 2.99% and lagging the S&P 500's gain of 3.32%.
The investment community will be closely monitoring the performance of Microchip Technology in its forthcoming earnings report. In that report, analysts expect Microchip Technology to post earnings of $0.57 per share. This would mark a year-over-year decline of 65.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.33 billion, down 40.57% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microchip Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Microchip Technology currently has a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Microchip Technology is at present trading with a Forward P/E ratio of 18.24. This expresses a discount compared to the average Forward P/E of 33.74 of its industry.
Meanwhile, MCHP's PEG ratio is currently 1.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 3.34.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 198, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Microchip Technology (MCHP) Gains As Market Dips: What You Should Know
The most recent trading session ended with Microchip Technology (MCHP - Free Report) standing at $89.74, reflecting a +0.03% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.2%. Elsewhere, the Dow saw a downswing of 0.6%, while the tech-heavy Nasdaq appreciated by 0.11%.
The chipmaker's stock has climbed by 3.11% in the past month, exceeding the Computer and Technology sector's gain of 2.99% and lagging the S&P 500's gain of 3.32%.
The investment community will be closely monitoring the performance of Microchip Technology in its forthcoming earnings report. In that report, analysts expect Microchip Technology to post earnings of $0.57 per share. This would mark a year-over-year decline of 65.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.33 billion, down 40.57% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microchip Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Microchip Technology currently has a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Microchip Technology is at present trading with a Forward P/E ratio of 18.24. This expresses a discount compared to the average Forward P/E of 33.74 of its industry.
Meanwhile, MCHP's PEG ratio is currently 1.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 3.34.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 198, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.